You shouldn't be able to view library books after the expiration date. They will remain on your Sony Reader until you delete them but if you open them they should say protected page or similar. Maybe there was a glitch with yours.
But rest assured you do not incur late fees or anything like that - the books are just assumed returned to the library at the end of the borrowing date. With epub files you can return those early in the ADE software by right-clicking on the book I believe and choosing return item.
Interestingly if you borrow audiobooks and transfer to say your iPod, they will work even after the expiration date has passed but will be removed from the audiobook software.
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