Here’s a greasmonkey script I created to let you use google reader in full screen that has since been featured Greasemonkey script at LifeHacker.
In order to get access to the settings and search you can toggle back to the normal layout by pressing W.
If you have anything you’d like added please add a comment, I’ve heard it works well with Better GMail when displaying Google Reader on the same page.
Download at User Scripts
Install Greasemonkey
Keyboard shortcuts that come in handy are
w - toggle fullscreen (shows search bar again)
g t - go to tag
g u - go to subscription
g s - go to starred items
j - next item
k - prev item
s - star item
u - toggle left sidebar