TextReader 1.0 For iPod Touch/iPhone: Reading on the go
This is a great app for all iPhone and iPod Touch owners, now you read your text documents on the go and it has support for a wide range of formats like Text (.txt,.text), eReader/Peanut Press (.pdb), Rich Text Format (.rtf), Palm Doc (.pdb), Mobipocket (.pdb,.prc,.mobi), Plucker (.pdb), HTML (.htm,.html), and Fiction Book (.fb2). It also has certain option which will make the reading easier on the small screen.
Detailed instruction are given here at Google code
Update Version 1.1 Beta is also available now.
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Can it read isilo documents?