I have the Pandigital Novel Android eReader, its the supposdly first color ereader on android system. Does allow videos and wifi internet. Also connected to Barnes and Nobel for all kinds of reading material.
I paid 99.99 for it and didnt like it at all and gave it to my sister.
To get wifi internet in your house just buy a 40-100$ wireless router and hook it up. Your service provider has nothing to do with wireless setup.