The dictionary is available both in-line when reading and standalone.
The memory capacity of the SD and Memory Stick Duo cards depends on what capacity card you buy. The SD card slot supports SDHC and it worked fine with my 16 gig card.
Yes, the available internal memory is really 1.6 gigs.
No idea how it works with 1k books, as I only have about 550 in my library and 300 on the device. The faster CPUs in the PRS-600 and PRS-900 do help a bit with large libraries.
As mentioned in the video review, the Case Logic zipper case is included with the PRS-900. No need to buy it separately.
You'd do better contacting Sony yourself to ask about repair times and costs for out of warranty units. PR folks rarely know much about repair centers and always put things in the best light while your contact with actual customer support personnel will be more telling.
Our full written review will be out later today and hopefully it provide you with more useful info.
-------------------- Lisa Gade Editor in Chief, MobileTechReview