The main handicap of the Mobi format is being owned by Amazon. They certainly seems to be trying to kill it. Anyway the original poster mentioned that he wouldn't be using DRM ebooks.
Calibre allows both the Cybook and the PRS-505 to works perfectly with a variety of input format.
As for the choice between the two, I guess price would be an important factor. When I researched for my own reader, the PRS-505 was significantly cheaper and was coming with a very nice cover, while the Cybook's optional cover was quite expensive.
Since then I know both devices have seen their price reduced, the price would depend of the poster location.
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