Without the ePub firmware on the 500, the only DRM it understands LRX. Sony has dropped LRX support from their bookstore. So where is no longer any way or even need to authorize the 500. All you can do with the 500 is use Calibre to convert to LRF to use with your 500.
I would suggest calling Sony to find out if you can still get the ePub firmware. Otherwise, the 500 really doesn't have much of a life. But given that the screen is a bit dark and it's slow, I'd not even keep it as a museum peace if Sony was to offer you a discount on a T1 or T2.
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