I've only tested PDFs that contained text (no pictures, tables or anything). For books I can say it works well although the reflow is for a single pdf page at a time. It will not link pages together (the reader keeps every pdf page break).
You do not need the sony software to upload documents. You can also use Calibre or put them directly on the removable drive.
From what I have seen on screenshots, the contrast on the Sony is the same as on the Kindle.
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