Acidbeza--Don't really have answers to questions #1 or 2, as I've only used internal memory on my Sony--I've got an SD card, but so far it only has a few pictures on it.
That being said, as far as Question #3--I do know that what some people who want to carry large collections of books around have done is bought multiple SD cards/Memory Sticks. You could store various types of books on each card, and then insert the card with the book your interested in reading at the moment into the player.
Good luck--and I hope you get some better answers from others.
dordale