Nope you don't have to reformat your books.
Yes you can send your books directly from calibre via email but after sending you have to manually resend the document from the amazon site personal documents section if you don't want to be charged.
Light flashing is still there unfortunately and a bit worse as the screen is larger.
It depends on your booklight. It surely needs a stronger one as it is much larger than kindle 3.
You did the right thing btw. I both used kindle 3 and kindle DXG and i would take the DXG any day.
Oh btw use dropbox it is a great thing for kindle.
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