Barnes and Noble Free Nook Books- search 0.00 and get a listing of free eBooks
Bookyards- pdf files can be ported to your Kindle
Books Buddy- a Nook app to locate free books
Digital Library NJ- Kindle, Nook; library card needed
eBooks Habit- regular postings
eReaderPerks- Kindle, Kobo and Nook; also, the "latest device news, book/ereader reviews and author interviews."
Feedbooks- Kindle, Nook; public domain books
Fictionwise eBooks- Kindle, Nook
Goodkindles- up and coming authors offer short-time free downloads via Amazon
Google eBooks: Best of the Free- Kindle, Nook
Inkmesh- search engine for free eBooks, including Kindle and Nook
Internet Archive- Kindle, Nook
Librophile- search by genre
ManyBooks-Kindle, Nook; 29,000 downloadable books
Memoware- Kindle and Nook
Mobipocket- Kindle
The Open Library- Kindle, Nook; one million titles
Penn State University's Electronic Classic Series Site- Kindle, Nook; pdf files
Pixel of Ink- free and bargain Kindle books
Project Gutenberg- Kindle, Nook; 33,000 downloadable books
Public Libraries- Kindle, Nook; check your state and local libraries (I have listed my state of NJ above)
World Public Library- "the world’s largest eBook provider"; mp3, pdf files; they have classic literature, graphic novels, audio books, children's literature and so much more"
***Here is a comparison chart of Kindle vs Nook.***