I find that ePub is the best format to use on my 505. Plus, if I was to get a different device later on, I would make sure it also supports ePub so I can still read what I want without having to convert yet again. LRF is a dead end format. While it works on Sony Readers, it won't work on any other reader brand. Even Sony realizes BBeB (LRF/LRX) is a dead end format.
Also with ePub, I'm able to easily embed the font(s) I want to have it look the way I want. I've taken a liking to Fontin. Looks much nicer than the default fonts used with BBeB. One other plus is that I can get more text on screen with ePub that's easily readble then I can with BBeB.
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