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If I want to stay tickety boo and not do stripping etc. I purchase (as if it's possible) non-DRM ePub files correct? DRM ePub files will require some sort of manipulation?
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The Kobo handles DRM ePubs just fine (ADE DRM). Most publishers/retailers support Adobe Digital Editions, so if you're talking about commercial purchases, you'll be fine. No fudging around necessary to make it work with the Kobo.
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Also can the Kobo be used while charging?
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No. Hopefully a firmware update will address this in the future. It has been brought up.