pyefox returns with his iphonetextreader, upping the ante to his beta 2 version. If you have yet to catch up on what this iPhone homebrew application does, this will basically allow you to read large (non-DRM) eReader, Mobipocket, RTF, PalmDoc and Text eBooks among others on your iPhone/Touch. While this app doesn't have the fancy schmancy format of rubooks or Books.app, it does support a variety of formats for flexibility.

It's already on its Version 1.1 Beta 2 and the changes are as follows:

• Add option to wrap searches
• Add option to have search match words (i.e. 'he' will not match 'the'). Words are assumed to be delimited by blanks, CR/LF, or punctuation characters.
• Add option to reverse the file scroll direction (i.e. swipe left to right for next, or right to left for next)
• Percentage is updated when scrolling while the "title/info/navigation bar" is displayed
• Cached ZIP and CHM files are displayed where they should be instead of being grouped with directories
• Ideographic blanks are used when indenting paragraphs.
• File Scroll can be used even if Smooth scroll is not selected
  

pyefox says that new Search options have only been tested for a bit, so there's a probability there may have been bugs that slipped through. He guesses he'd probably need to add more punctuation and characters. You can check out more details as well as the downloads by following the source link below.