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On the previous reader had you registered to the US Sony Reader Store or to the UK sites?
If you live in the UK, we don't have access to the Sony Store as it is US only. Now although you could register to it, I suspect that if you tried to buy anything it may not let you as you won't have a US address or CC.
To actually install the software, it doesn't matter what you say as you can always change it after installation. It is a menu option.
The only thing it does is direct you to either the US Sony Store to buy books, or to a set of weblinks for WHSmith, Waterstones or Mills & Boon in the UK.
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