I use a base of 12 point serif when I create books and will increase it if I need to read in low light areas. I have seen books created with an 8 point base and for me they are not readable except on the "L" setting. As the creator of the file you are free to set whatever font size you want. For many of the Sony store books it seems that readability was not a concern when they were formatted. It is best to try it out yourself as your mileage will vary.
Likewise, creation with calibre and transfer with either calibre of eLibrary. Whichever work flow works best for you. I have found that both work well for me.
Since you are considering the Sony PRS-505 you will not require the Sony USB driver that is required for the PRS-500. There is another USB driver in calibre that you can load but the calibre USB driver cannot be on the same machine as the Sony USB driver. I have two machines so I have one on each to avoid the possible problems.
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