I haven't heard of problems like yours, checktheblues. If I was you, I'd try to get the regular pre-installed programs working properly before installing 3rd party programs.
Have you made a successful connection to iDS since you re-installed the developer package?
Have you tried opening Mobipocket books without an expansion card (of any type) inserted in your iLiad?
Have you calibrated your stylus (unlikely to help, but won't hurt)?
Does your iLiad have plenty of charge?
Can you connect your iLiad to your computer via USB? If so, have you tried formatting the accessible user area?