Project Gutenberg
Project Gutenberg is the oldest producer of free electronic books (eBooks or etexts) on the Internet. Over 12,000 titles available, this volunteer effort produces mostly expired-copyright plain text transcriptions. The best source for free classic literature.

eBooks.com
Large selection of eBooks in various formats for sale, including the latest releases.

ePublications Marketing
A site with eBooks for sale, and an affiliate program for you to sell those books, plus a program to list and sell books you have authored.

Ebook Library at the Electronic Text Center, University of Virginia
1,800 freely-available ebooks in Microsoft Reader or Palm formats, from the University of Virginia Library's Etext Center, including classic British and American fiction, major authors, children's literature, American history, Shakespeare, African-American documents, the Bible, and much more.

Baen Free Library
Science Fiction and Fantasy Electronic books. Just a little over 60 books, but all free and available in various formats. Great resource for the science fiction fan.

DigitalBookIndex
Listing of almost 100,000 eBooks and eDocuments with links to their sources, roughly half of those free. Not always up-to-date, but still a good resources for finding books published in electronic formats.

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