Sony PM3 Player Question

[RubberDuckie]

I was looking for a portable MP3 player (walk-man style) and because I currently have a sony camera I was looking at the sony versions. Hoping that both could use the same memory sticks. I noticed that there are two kinds of sony memory sticks...white and blue.
The cameras use blue and the MP3s use white....is there a difference? will both work in eather option?

Also I heard that sony uses some kinda of copyright thingie....meaning you have to create the MP3s with their software from the original CD. Meaning you cant just use any MP3 downloaded from the net. That doesnt seem true, but is it?

Any one able to shed some light here...I dont want to buy a sony and not be able to use the memory stick in both or be stuck without the abilty to listen to all my good ole NAPSTER MP3s