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Fixed it.
I decided to take it apart and put back in the original battery. Luckily I had not thrown it away. When I plugged it into the wall socket, this time the light was solid red, not flashing red. Left it overnight only to find nothing had changed this morning, except the light was no longer on. Crap. I then plugged it into my PC and tried to run the upgrade program but again it would not recognize the 505. I left it plugged in and a few hours later, it suddenly reset itself, with no help from me. It is working fine now, but it is really looking rough. I had one extra part that I could not figure out where it went and the top and bottom panels are chipped and scratched and I need to keep the 505 in a case at all times else the top and bottom panels pop off. Not really designed for taking apart over and over again.
Anyway, it is working now but this is the final push towards a new model when I get back to Canada next summer. Probably the 650 but I will have to take a look at the models. As well, Sony should be coming out with new models next year so if my current reader does not implode again, I will try to hold off buying.
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