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Functionally, the 500 and 505 are very similar. The main difference is the screen - the 500 has a 1st generation eInk screen; the 505 has a 2nd generation "VizPlex" screen which is much better - enormously more readable in low light levels, and virtually immune to the "ghosting" that 1st gen screens suffer from.
The 500 is a very good reader, but the 505 is even better.
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