Thank you Kismatt and Mr. Pockets for the quick replies. I'm rather relived to hear that.
Edit: I did the factory reset. My Onboard Storage dropped to x MB of 210 MB, this is a drop from x MB of 252 MB. I've read here that I would lose some storage with the factory reset, although it wasn't as much as I expected.
I didn't have to reformat it or other such stuff. It automatically loaded the software version 2.0, which it was previously running. It also included the free 25 books.
I deleted all of the pre-loaded books (I couldn't delete anything before), so this is an improvement. I'm going to load the pdf's and Kobo books I want and see where that leaves, or takes me. I guess I'll give more info on my expereience as I get it.
This site has been most helpful. I'm glad I found it.