Wow - I wasn't expecting to wake up to so many awesome responses! :)
Firstly, let me clarify something - I trust our GM and have no doubt he has something in mind. He probably also wants to create an interesting RP situation, and he's certainly done so. However, even if he has some grand plan, he's great when it comes to rewarding CLEVER solutions to problems he throws at us, even if it breaks his master plan. On the other hand, if he's just overlooked a minor rule that easily breaks his scheme, such as "read magic" being prepare-able without a spellbook, then he may just overrule it, as it's not a CLEVER solution to the problem. This is why I suspect it won't work, though I'll certainly try it.
This is why I'm looking for outside-the-box solutions, rather than just rule lawyering. Something like teaching a magical helper monkey to read the books to me! :D I really like the braille idea (though I'm not sure if such a language exists in the Inner Sea) and the riffle scrolls idea could have potential.
I still have spells, so I'm not a "commoner" as some people suggested - Our DM said that every time we rest, the last spells I had memorized are re-prepred. So I'll get the same spells over and over and just can't change them up or add new ones for the moment.
So yes I'm OK with the situation. Our DM isn't just being a dick - He's trying to create interesting RP scenarios. And honestly, I totally brought this on myself (which I'll get to below) in full knowledge that when our DM does "punish" our characters, it's probably going to be a rough ride! ;)
Someone asked HOW this curse came about. Well it was pretty funny, and I knew I was going to screw myself, but it was what my character would do! A little background though first...
<FYI, this get LONG! If you just want to read about the actual curse event, skip to the last couple of paragraphs. The background info is what makes it funny though.>
I'm playing Kaltharnus Drax - A wizard who, at the start of the campaign, woke up in the Varisian desert with minimal knowledge of his past. He knew his name but that was about it. He could still recall most practical knowledge, such as Arcana, History, Geography, etc., but nothing personal. He's also totally obsessed with the pursuit of new knowledge & the study of magic. He doesn't seem too bothered that he can't remember his past, but he is partly driven to learn on account of the fact he vaguely recalls that he used to be much more powerful. He's also plagued by nightmares and honestly a little bonkers! Beyond this, I've left his past mostly blank, with just a few hints at where I think he may have come from, so our DM can fill in the blanks as he sees fit and create a mysterious background for him, unknown even to me! Oh, and I have an owl familiar named Egrix, who spends much of his time leading people to wherever I've been knocked unconscious this time (I get KOed a LOT - I'm ok with it. My time to shine will come!). Kaltharnus needs to learn not to wander off on his own so much, or stride into danger so easily because there's some tome or magic item within his reach!
Onto our party - A half-orc barbarian called Mug, looking to become a leader amongst his people and unite warring factions; A reserved human druid called Krojun, thoughtful but somewhat of a loner, strongly protective of nature. And then there's Caleb Clay - An inquisitor of Azmodeus, who clearly has some hidden agenda. Meta-wise, we know Caleb lies or hides the truth about everything, and that he's an evil devil worshiper (the rest of us are generally good or neutral, though we don't follow the alignment system very rigidly). In character though, he's done a few shady things but we don't know that he's evil, nor a devil worshiper.
Kaltharnus (me) and Caleb have had a troubled relationship. At first, things were neutral, but then Caleb tried to attack/restrain Kaltharnus in his own private wagon (we're traveling in a caravan). Kaltharnus was able to evade him by turning invisible and fleeing, but Caleb perused and when I fought back, Caleb feigned that I had struck him with powerful magics and collapsed (my roll totally failed though). The rest of the party turned up at this point due to all the noise, but Caleb convinced them that I had attacked him first! Anyway, we were both locked away separately for the night, Caleb still feigning mortal injury. However, he'd dropped his precious spiked chain weapon in Kaltharnus's wagon, during the initial fight. So I threw it far into the woods, using magic (out the wagon window). When he found out, he was very upset. Meta-wise, it was all a hilarious scenario though.
Anyway, Kaltharnus now clearly didn't trust Caleb. However, Caleb then later comes to him, apologizes and pledges to serve with Kaltharnus as his master!!! He didn't trust him at first, but for a while Caleb did all that was commanded of him, and appeared to be loyal servant.
That all took place many sessions ago. Spin on to the last two sessions. We're in the city of Jol, in the Land Of The Linnorm Kings. Kaltharnus has gone out exploring and found a magic shop. He purchases some magic scrolls, but then the storekeeper shows him some other powerful magic items, way above his level and purse. When he discovers he can't acquire them through coin or persuasion (yeh, who's going to give away rare magic items?) he becomes quite upset. He returns to the group caravan and tried to persuade both the druid (as there was a magical nature artifact there too) and his servant Caleb to help him break into the store and take the magical items he so desires. However, both refuse! This is the first time Caleb has refused a direct order - There is an argument and ultimately Kaltharnus breaks bonds with Caleb and dismisses him from his service - So we're enemies again! So Kaltharnus heads out into the night alone (it never ends well when he goes alone) to commit larceny! Long story short, he gets arrested - Big surprise!
So the city guard come to the party caravan and bring them before King Opir Eightfingers of Jol. He's NOT happy! Kaltharnus is there in chains. He tells the party that they are to leave the city immediately (without Kaltharnus) but to send one person back within a week, when the weregild (i.e. fine) will be set. If it cannot be paid then Kaltharnus will be sold into slavery. So the group leaves for a week, has some minor challenges to overcome, surviving outside the city (I'm playing an alternate cleric character I break out when Kaltharnus gets into these kind of situations - It's not the first time!). Then who do they send into the city to represent/defend me once the week is over? Goddamn Caleb Clay!!!
So Opir Eightfingers sets the weregild at a pretty steep price, but just within our budget. Caleb, of course, doesn't want to pay using his hard earned cash (he's also the caravan's face-man and trader - The guy knows how to talk his way into position), so he tries to use his honeyed words to resolve the situation. Meta-wise, I know he's not concerned with freeing Kaltharnus, but really after a plot artifact that he had on him at the time of capture - So freeing Kaltharnus means getting it back.
He doesn't have much luck, but then Opir Eightfingers suggests an alternative. He happens to have a magical device in his possession that he's curious to see tested, but has had no one volunteer to do so. The device is a box with two holes for hands on opposite sides. He explains that two people each put a hand into the device. They then have 60 seconds to make a choice (signified by grasping one of two glyphs on their side of the box - Vice & Virtue). It's basically "The Prisoners Dilemma" challenge! If we both choose virtue we'll each receive a minor, but temporary punishment. If one chooses vice and the other virtue, then virtue gets a minor punishment but Vice gets a MAJOR reward! However, if we both choose vice we each get a MAJOR, permanent punishment. We're individually and secretly told what our MAJOR reward will be as soon as the test starts, but not the MAJOR punishment. We start the test and I learn that my MAJOR reward would be the two magical items that I tried to steal from the shop and got me into all this trouble in the first place! Well you already know what I choose at this point - Kaltharnus can never resist the opportunity for magical gain! Meta-wise, I knew choosing vice was a BAD decision; I was almost certain Caleb would do the same, if his reward was as tempting as mine. Well guess what, we BOTH chose VICE and *BAM*, cursed! It wasn't until the choice was made though that we each (secretly) learned what our curse were - I could no longer read!!! Pretty brutal for a wizard! I later learned that Caleb's curse is that he may no longer tell a lie - Not as crippling, but still going to be awfully funny to RP for his character.
Anyway, that's how I ended up with the curse! :P