I am assuming you are running Windows Mobile? Pocket Internet Explorer is horrible. Opera is a good browser. I am running Opera 8.65 on my SE P1i and it's pretty good. It allows me to render pages normally or wrapped to fit the screen. Another feature I like is the ability to flick scroll similar to the mechanism employed by the iPhone.
An alternative is
Skyfire (which is currently in a limited beta, limited to the US) which is showing alot of promise and claims to give you similar functionality to mobile Safari on the iPhone as well as playing YouTube videos inside the browser.