Thanks for the comments, nothing has worked so far.
I am still running WinXP and there is a required driver from Sony for the 500 that is installed. (Unlike the 505, the 500 is not a plug-and-play USB device to Windows. This is why there are so few Mac owners that bought the 500.)
I am going to upgrade the Calibre on the back machine this afternoon and see what it does with the 500. If there are still problems with that then I know the problem is the reader. If it works, it is just a problem with the Sony software.
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