There are two locations where the highlights and annotations are saved on your device. One is in the folder "Digital Editions\Annotations" (note: saves only annotations and highlights of some file types), the other is the file ".kobo\KoboReader.sqlite". Save both on your pc before you reset your reader (I guess it is better to save the whole folder "Digital Editions"). This is all you can do at the moment. After you have solved the display problem you can start dealing with the highlights. Good luck!
Last edited by tshering; 01-19-2013 at 06:53 PM.