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I agree with the sentiment that you should check out the devices for yourself. I have both devices and there are advantages to each.
In favor of the 500, is the cover (for the reasons stated above), the button layout (i liked the buttons on the left side), and the operation of the buttons (the buttons on my 505 are harder to depress).
In favor of the 505, navigation feels faster (faster processor/optimized code?), the screen refresh is faster (not a big deal to many), and, at least in my case, the screen is MUCH whiter/brighter than my 500 (my 500 is 6 months old and the screen whiteness seems to have degenerated over time).
I'm going to take my 505 back to the SonyStyle store and compare the "button operation" with another unit. If the "disc" (lower left) isn't any easier to operate on another unit, I will likely return mine.
To each his own...
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