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You can certainly buy and download books from the Sony book store in Australia but the selection of books available to you could be different from your home country.
If you want to register yourself with the store using your home address you'll be able to purchase books available for your country. If you have a credit card with a billing address in your country it should be no problem to make purchases. If not, I'd suggest buying a Sony Store gift card before you leave for Australia and using that to top up your account credit.
The circle with a line through it and the USB symbol is normal when the reader is plugged into your computer: it should go away when you unplug the usb cable from your reader.
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