When you've tried to charge your reader with your computer, would your computer go into sleep mode? If this is the case, the computer won't charge the reader, and in fact it could actually drain the battery.
I think a wall charger might do the trick for both charging it and you'd probably be able to read on it while it was connected. You probably already know this--no need to buy the charger made for the reader...just pick up a cheaper PSP charger.
Hope you can get your 505 up and running!
dordale