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You're not missing anything, John. The Sony Store is based in the USA and will only sell to people who have a US credit card. Some European members get round this by mis-stating their location and getting a US member to buy Sony gift vouchers on their behalf.
EPub is likely to be a much more flexible format in the long run.
As for conversions from lit: it generally takes me very little time: just a few minutes if the source is well-formatted to start with. You shouldn't lose any formatting. If you are starting out, then I'd get familiar with Calibre, which is free and well-supported. Book Designer is also free, but its creator hasn't updated it for a year, and it is rather less versatile than Calibre.
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