Bren423--Sorry to hear about the demise of your 505.
I have an iPod Touch and a 505. I do read on my iPod Touch on occasion--using Stanza and the eReader program for the Touch. I can tell you that the experience is no where near as pleasurable as reading on my 505. I highly recommend getting an e-ink device for reading.
I know several people have had good experiences with B&H, but I personally haven't bought anything from them. I don't have any idea about the customs charges--hopefully someone else can answer that for you.
Good luck with whatever you choose.
dordale