Congratulations Epuppy! What a fantastic gift.
The Sony "Reader Library" software is supplied on the Sony Reader itself (it isn't shipped on a seperate CD). If you are using a MS Windows operating system, when you plug your 650 into the PC two portable drive will show up in Windows Explorer labelled READER and SETTING.
READER contains all your books, pictures etc.
SETTING contains the Sony Reader Library software installer
You can install the Sony software simply by opening SETTING and executig the file "Setup Reader Library for Windows.exe"
Or alternatively you can use the excellent Calibre ebook management software, available for download from:
http://www.calibre-ebook.com/
With regards to the screen flash, this is normal for an e-ink display. It is done to prevent ghosting when the display changes. You soon get used to it and it doesn't detract from the reading experience at all (though it is a bit annoying for vieiwing pictures).
Enjoy your reader
