There isn't really anything in this thread about maintaining the reading status. if you want to put books into a collection called "Finished", you can. But, that doesn't affect what the reading status. To do this, look at my Kobo Utilities plugin. That has ways to sync the reading status between the device and calibre or to simple set the status from calibre.
For the template error, we would need to see the error and what you copied-and-pasted. But, the most likely reason is that you needed to change something in the template based on your calibre library. This is probably the name of the column the template uses. These need to exist in your library or the template changed to use what you have.
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