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I believe the black flash when you turn a page is inherant to the e-Ink technology - certainly it's something that's part of the Sony Reader & not tweakable. Having said that, in practice, you quickly get used to it & don't notice it.
Sony format is .lrf (details on Wiki here) but conversion options include libprs500 or Book Designer (multiple output formats).
Note that reports suggest that the 505's not that good with more than a few hundred books loaded, so it's not a matter of "load everything & choose". Best way is to just load a selection from a PC, alternatively have them split between a number of small SD cards, loading just one at a time.
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