Dont give up yet...
Hi Dan 27. I bought my wife a new Nexus 7 32Gb 3 weeks ago and she was so frustrated with it that she made me return it to Costco.....my wife has a patience level of 3/10....
So, my daughter-in-law who has a Kobo and happy with it , 'convinced us' to try the new Kobo Arc. The wife is super happy with it compared to Nexus 7.
Persist with your Arc, and you may have a defective unit or compromised OP system. Return to the seller/dealer and demand a replacement. No one should have to endure what you have with a NEW unit !
Hope it works out for you.