Is it possible to play a style direct from SD without loading it in the custom memory on the KN7000? Seems to be a very important feature while, if I understand things correctly, the KN7000 may have only 20 custom styles.

Another thing, what about finding additional styles made specially for the KN7000. It seems to be very hard to find more than a few user made styles.

It is not possible to play styles direct from SD - they have to be loaded to either Custom or Composer memory. The KN7000 can accomodate 20 Custom styles and of course 3 Composer styles.
There are many styles from the previous KN models, converted to KN7000 format on the Technics web site
http://www.technicskn7000.com/home.asp and also from Styledisc Warehouse http://freespace.virgin.net/neil.blake/

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Willum