Welcome to mobileread and to Linux! Hopefully this will be the start of a long and fruitful acquaintance with both :-)
Thanks for the kind words, they're always much appreciated.
To upgrade libprs500 you need the command
easy_install-2.5 -U libprs500
EDIT: And I should say that you will enjoy Python. Let me recommend ipython as a great tool to ease python development.
Note the -U it means upgrade.
Can you post the error message you get while transferring files, it shouldn't be showing any errors at all.