I avoid using the 'KDS' with my KT, with the exception of the first time setup of the device. After that initialization process, I have not had the need to launch that software at all.
I use wireless to update the firmware (simply press the sync button on the KT home screen) - do you have wireless? Text cut offs were a fixed glitch from a previous firmware upgrade.
I always sideload books by drag and drop or calibre. The KDS software is by no means needed except for initialization.