I'll let someone else answer the first question, but regarding borrowing library books, the only thing you need is your library card. At this point, I think it only works with Overdrive ebooks, so if your library uses Overdrive for ebooks, you can download them directly onto the Reader through wi-fi.
The only other *possible* requirement that I can think of, is an Adobe Digital Editions account; I think you'd have to authorize your PRS-T1 to that account.
The T1 is my first dedicated e-reader, and I love love love it. :-)
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