Thanks to dwanthny and itimpi - I tried reformating the internal memory - no change. I wiped the machine and reinstalled everything - still has the same problem. I thought for a while that it was a flaky SD card so I switched to my wifes 505 and the card works fine.(I keep ebooks on SD cards and we swap them back and forth) - At this point I give up - I can use the wifes machine to load cards and my 505 is in all other ways functional.
Re Ubuntu, I will upgrade Calibre on that machine when am more comfortable with Ubuntu - I have been running Suse for last few years and got tired of fighting with it.
Calibre runs flawlessly on Ubuntu.
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