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If your goal is reading text material, the four or sixteen shades of gray point makes no practical difference between the units. All of them now utilize the latest e-ink screens that are far better than the prior generation.
PDF rendering is still a hit-or-miss thing in a reader that has a small screen. If the document is setup to allow reflow (and almost everything I have in PDF is not set that way) then it will attempt to render a full page on each screen. If the PDF was designed for a letter or A4 sized page, all I will see are a few horizontal lines where the text should be. Zooming on a page is just a stop-gap measure and as said above, you have to rezoom each page. The new Sony Digital Editions will work fine on the 505, but there are very few of those released.
Sjort of converting your PDFs to another format you might want to consider a device like the Asus EEE or perhaps even better is the Acer equivalent that runs Windows and has a 3-hour battery life. These will allow you to view PDFs and read Mobipocket books. The screen is a color LCD and around here they sell for ~$299 ($317.98 including state sales tax.)
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