i have a 700, not a 505, but i can answer some of your questions, if i may, and add my personal vote for readers supporting epub (this is not exclusive to the sony devices, but they were the first ones to add it).
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Originally Posted by Rique
What about ease of conversion from other formats? I get the impression that Calibre can pretty much do the job. Or is conversion a hurdle? Is lack of mobi support an issue at all?
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for non-drm (or drm-removed) books, conversion using calibre is fast and intuitive with generally good results. if you convert to epub the books can easily be edited to correct any formatting / editing errors you find.
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I've read that there are only three fonts. Can fonts be added or changed?
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see
this thread for a very easy way to add whatever custom fonts you want to your 505, using a bit of css added to your epub file to tell it to use fonts installed in the memory. practically unlimited font possibilities...
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I know there is no official support from Sony, but - how well does it work with a Mac? Does the reader show up as a USB drive when plugged into the computer? I assume I can simply use the Mac version of Calibre?
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yes to both of those questions.
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Any plans for dictionary support in the future (this is a "want" for me, not a "need")?
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there is an active campaign to get adobe to integrate dictionary support to their epub rendering engine. hopefully they'll take notice, in which case sony could add that via a firmware update.
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Are alternative firmwares available? Or even third party hacks or patches to add functionality not included with the standard f/w?
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see the 505 forum for user hacks and firmware updates.
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Will it remember where I left off with all books in progress? Even if there are several in progress at the same time? How is the bookmarking?
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the sony bookmarking function is very good, and the 505 has a dedicated bookmark button that will add / remove them or, via a long press, display all bookmarks on the device (good for people who like to read a lot of books at the same time, or bookmark pages for future reference).
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And how readable is it in bright sunlight, really? I like to read on my deck.
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all the e-ink screens are excellent in bright sunlight ; in fact that's really where they are at their best, in direct contrast to backlit lcd screens which are generally unreadable in those conditions.
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Finally, some have mentioned there are problems with large libraries. How large is large? And what are the nature of the problems? How can I avoid the problems?
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personally, i use calibre to create "collections" (virtual folders) by adding tags and series info, and that makes a big difference for navigating through bit libraries (i currently have about 400 books on mine, but between the collections and the bookmarks i get around them just fine).