I upgraded two days ago (Thursday) to the Kobo Touch firmware version 2.1.5 r43939 dated 10/12/12 and all my problems with the Kobo appear to be solved. My machine went from slow ("traag") to a speed demon so I am a happy camper. The new context menu that allows one to assign a book to a shelf (or shelves) makes organizing a lot easier.
Thank you very much developers. I am back to reading with my Kobo instead of fighting with it.
Does anyone know how to back it up as I downloaded the software directly via WiFi?
P.s.: Sorry if this is the wrong thread. If so, please move.