I think it depends on what you mean by "readable". The first example clearly indicates the program logic and should be understandable by anyone with a programming background.
To me, the second example is more intuitive based on the context (i.e., you are taking an array (or some other collection type) and executing a method named Sum on each element of that array). The only place the second example can become less clear is in the actual lambda expression itself especially for someone who hasn't had experience with lambdas or alraedy have a background in functional programming.
I think as lambdas become more prevalent in .NET programming this will become less of an issue. As it stands, I think there is a very small learning curve to understanding the basics of how to use lambda expressions in .NET.