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Final Update...ran into the problem again and determined it was because I was downloading from China IP address. Used VPN connection outside China and everything immediately worked fine...so Sony Bookstore downloader has some kind of block to China IP addresses because there isn't an issue with the Google free books (AFAIK). The funny thing is Sony sells eBook readers for purchase in China...one would think the Bookstore would be similar.
I should restate that this problem just started in March of 2010 so it seems to me that Sony did something on their side to stop illegal downloads that caused problems with legal downloads.
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