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TBobI think you would do better by selling off your duplicates indivdually rather than in groups because a lot of collectors scour ebay looking for a particular T206 card for their collection and might not bid as highly if it is coupled with others. On the grading situation, although I believe PSA to be more inconsistent these days in grading and while I am leary of their grading cards I believe "troublesome" (possible alterations etc), there is no denying that PSA cards still bring the highest dollar amounts when you are selling graded vg, vg/ex and ex cards. I wouldn't be in any great hurry to get those vg, vgex and ex cards graded as they'll sell fine on ebay provided you sell them with a front and back scan of each card. A lot of time and trouble but worth it in your return. If you have some cards which look near mint or mintish, by all means get them graded. Cards with carry a PSA 7, 8 or even a 9 are going out of sight.
As far as the T205s go, I wouldn't recommend trying to complete that set unless some of that lot of cards you have contain HOFers or tough cards or minor leaguers. Prices for exish and above 205s has started to climb as well. Although 205s are generally going to be available on ebay, trying to find Rowan, Joss and some of the boys is a real task, unlike the 206s in which you can always find the cards in the set (minus the Big 4 plus O'Hara and Demmitt variations) on ebay with some patience and searching.
Good luck!
TBob