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A UK 505 will have a 1.2.xxx firmware, which mainly differs from the US 1.1.xxxx firmware in that the displayed date format is in dd/mm/yyyy format, rather than the US mm/dd/yyyy format.
There's no need to try & update your firmware. As for buying books, the Sony store won't let you buy from there without a US credit-card, even if you install the US version of the desktop software, but there's no geographical restriction on the Reader itself.
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