No, you can not read .chm files on your Ipaq, or any other Pocket PC. Although you can de-compile the .chm (chm = compressed html file) back to a html file with Microsoft's HTML Help Workshop.
Then if you want to save space, you can zip the html files and use a pocket PC application like Starbuck to read the zipped html files.
Or you can convert your html help files into Pocket Pc help files with PocketHelp.
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