Thanks for information and your help, I learn.
Given that there is a different font file on ereader for epub and txt then you'd think that has to be the problem.
Replaced 2 files on the sony prior to the problem - tt0011m_.ttf and tt003m_.ttf
Not sure if either of them is epub one.
Is one of these the one ? Or is it the 3rd font in there.
I have read solutions applied with varying degree of understanding.
Nothing that says "here is solution for applying chinese fonts to a sony reader and converting .txt and reading on the ereader"
fyi - calibre is without a doubt best package for manipulating and managing an ebook library. I'll be donating as soon as a prise my cc from my wifes purse *grin*.