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Don't use the A5 setting, use a custom size, at the size of your 505's screen (see those I gave above). RTF will NOT display images or tables, just text.
I do all the formatting in the "page setup" under file (I use an old version of Word) and set the margin for 1cm. This is the same dialogue box in which I set the size of the document.
When you're looking at your template, make sure you have it zoomed to 150%. This makes it look more like the size of your reader.
I always justify the text, but indent the margins. This is personal preference - I don't like jagged right margins.
As Elfwreck has pointed out, the font looks much larger on pc than it does on the reader. I set the font at 18pt. You then have the option of making it smaller or larger with the reader's zoom feature. BTW I set the font size by selecting all the text (Edit - Select All) then changing to 18pt. Word has a tendency to always change to its normal size (12 or whatever you've set this as).
If Calibre is simpler and easier for you, use that. It's just that I know Word (the version I have) well, and have no problems using it. If you're not as familiar with it, Calibre might be simpler.
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