There is no comfortable function in iTunes to transfer large e-books or documents to or from the iPod. Everytime major functions are missing a freeware author steps in and offers a freeware program that would add the functionality. Ipodlibrary is the freeware program that steps in this time. You can use it to add and remove all sorts of text documents to and from your iPod.

Ipodlibrary is able to import txt, doc, lit and html documents avoiding the 1000 notes limit of the iPod (by setting some to inactive which means that they do not count against the limit). It keeps track of the position that you are currently at which makes it easy to continue where you left of.
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