Velocity Micro is now shipping its Cruz Reader digital reading device. The device went on presale through Borders a couple of weeks ago, but began shipping this week.

Now shoppers can also purchase the $199 eReader directly from the Cruz website. The Cruz eReader has a full color 7-inch screen, 256 MB of RAM and weighs one pound. The Cruz Tablet comes with a 7-inch color screen and 512 MB of RAM and weighs one pound. It also supports a multimedia experience, so that users can also watch videos, listen to music and browse the internet.

The new eReader has a 7-inch color touchscreen and runs on an Android based interface. Like other tablets on the market, it also plays video, music, is web enabled and supports video games and e-mail.