Resolved
The end of the saga.
I called the amazingly helpful tech support (with no wait in phone line) and got a courteous and smart agent. Not what I was suspecting, especially after the dud SonyStyle experience.
Within an instant I was at the "exchange" stage of the conversation (one quick description; a couple of discussions about reset and power) where for $108 they would send me a refurb (with a 'new' warranty) and I would send them back my squid.
$108 is an ok deal - its a 2 year old (almost) device, well out of warranty and it's half the price of buying a PRS300. So I said yes.
The call was on Thursday, I received some email and a UPS tracking number Friday and the new 505 arrived today - pretty efficient.
I have to return the dud one, but that's ok!
eReading once more and surprised at Sony CS - it's a shame that I'm surprised at good CS.
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