I've unzipped your ePUB and created the ePUB using Calibre and BookCreator. It looks like the ePUB created by Calibre crashes the PRS/505 device.

: there goes by bookmarks.

sony needs a better way to store bookmarks!
Anyhow the ePUB does not crash AdobeDE and the images did look good on AdobeDE/Sony Library. So the solution so far seems viable. I need to test it on the SONY first.
=X=