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Another 505 user here (Sydney) I didn't have any problem(1) registering or claiming my free books, although I did have to claim to live in the states.
I've had no problem getting content from other sources and with convertlit and Libprs500 it's trivial to convert them to lrf for the reader.
I *love* the Reader I use it on the train every day for my commute and it's just magic.
1) Actually when registering the first time the Sony Connect site crashed part way through, and although it had credited my account with the 100 free classics, it hadn't actually registered the device. Then, when I registered the device properly, they gave me *another* 100 free classic. Technically a problem I suppose but *I'm* not seeing it that way
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