I make PDFs for the Sony Reader all the time; I set the page sizes in Word first. I use 3.54" x 4.6" pages, with .1" margins (but I like very small margins).
I use 9pt Georgia, most of the time, but I also like fairly small fonts. Most people like 10-12 pt fonts. If you use blank space between paragraphs, you can probably use fonts on the smaller end (9-10); if you use indented paragraphs only, the larger font sizes are okay.
I'm okay with very tiny fonts on the Reader (6pt, sometimes), but most people aren't.
The page count will be HUGE. If there are images or graphs, you'll need to consider how to format those.
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