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I got my new replacement 505 today - life is good.
The Sony folks who helped me were great.
Authorizing the new reader was virtually automatic. I will have to get Sony to help me deauthorize the old one - for some reason you can't deauthorize the first reader. The non-DRM content sync'd on the first connect. The DRM stuff sync'd after the authorization process completed. Very easy and painless. You are allowed a total of six devices so even the authorized broken one doesn't really matter.
PCH
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