Not sure of number 1.
Number two, you can make collections, which are like playlists on an mp3 player, to organize your books and you can call them whatever you like. If you're using the Sony software, open it and plug the Reader in to your computer. Once it recognizes your Reader, click the little triangle next to "Reader" to drop down the menu. Then click the little "+" icon on the very bottom left corner of the screen. It will make a new folder for you to name and you can drag and drop books into it. When you unplug the Reader, that folder with the books inside will be on it.
You can organize the books on your computer the same way but to do it on your reader make sure you're under the "Reader" section on the left pane of the program.
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