Since no Sony owners have replied yet, I'll share the teeny teeny tiny bit I've gleaned from my time here. I'm sure once I've posted someone will come along to correct and/or expand.
There is a wiki page dedicated to the PRS-505
here, which will give you tons of information on supported formats and conversions.
The two top software conversion programs that I am aware of are (from the
MobileRead Wiki):
Calibre - by Kovid Goyal, utility for working with ebooks including file transfer to the SONY Reader. Uses Python. For Windows/Linux/OSX. Can convert HTML, TXT, RTF, LIT and PDF files to LRF. Also has utilities to download websites and automatically convert them to LRF. You can visit the Calibre section of MobileRead
here.
Stanza - eBook reader and converter. Supports reading from Plain text, HTML, PDF, ePUB/OEB, Mobipocket, Amazon Kindle, MS LIT, MS Word, RTF, PalmDOC, and RAR compressed books. Can export to iPhone bookmarklets, Kindle, Mobipocket, HTML, epub, and PDF.
If you're ever traveling in the U.S. you might want to pick up some gift cards from a Borders book store which will allow you to buy from the U.S. Sony Store. If you have friends in the U.S., maybe they can pick some up for you.
I hope you enjoy your Sony as much as I enjoy my Kindle. E-Ink is fun!