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You cannot use the old Sony software with the T1 so don't. Open the new Reader for PC software. Let it open. It may ask you if you want to import your books from the other program or not. That's up to you. If you do, it'll take a while. If you want to do that then wait until it finishes before connecting your device to the computer.
Connect your device to your computer. On the device when prompted select Data Transfer Mode. (touch the device screen) It should only take seconds.
Then wait.
The software should pick it up. Don't go into explorer or anything like that yet. By the way, when you formatted the device you erased all the screensavers & audio files on it.
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