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According to the Sony website, the PRS505 does support the SDHC cards so theres no problem there.
Have you tried pressing the reset button on the back for a few seconds then switching it back on.
If this doesn't work you may have to try the hard reset option but that should be a last resort. I can't remember the key sequence for this of the top of my head but I think it wipes all your current settings.
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