Hello,
.5mm either side is too much. The easiest whey to get the right amount of protrusion is to stick a strip of150 wet and dry to something flat and tape some paper to the side of the plane, either side of the blade. With the blade centred in the body, rub the blade on the abrasive (so the paper straddles the wet and dry) until no more metal can be removed from the side of the blade. Do this on both sides so it is equal and you will be set.
Yes, the sole does need to be flat, but since your plane is a used one it may well have been done already. If it needs doing, it won't take long as the sole is very small, but do be sure the blade is installed and the clamp is tightened as it would be in use (blade retracted above the sole, obviously) clamping the blade does have a distorting effect on the sole as the wedge it rests on is quite thin at the end, so setting the blade and then flattening will correct this.
Mike.