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I would think any defects would show up within the 90 day period. Dropping it however, can happen anytime, and it is definitely not a good thing. I killed my 505 dropping it, and Sony doesn't repair them for you, they sell you another one, refurbed, at a cheaper rate. So it ain't cheap. But even with that experience, I don't have an extended warranty on my new 950. I do, however, have it in a leather case that is bigger on the edges and corners so if dropped, it will be cushioned a bit.
As for the other, yes, you can just use Calibre, also drag and drop files, but what's wrong with registering at the store as well? You have to register with Sony anyway, to get your warranty. And being able to get books from the store wirelessly is pretty neat. I don't buy a lot of books, but it's handy to have that option -- I bought one when I was traveling and found out about a new book from one of my favorite authors and didn't want to wait until I got home to get it from the library.
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