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So, to update, as requested.
It's taken since Christmas but finally Kobo Cust. Service closed my case file, so to say.
A few days ago I received an email from the Tier Three rep, I don't know how many tiers there are but I don't wanna find out. It said that many customers that had used gift cards over the Christmas season had been seeing this problem and their work around solution to it was for me to open an account with a different email address and they would port all my books over to that one and that this had worked for them, in the past.
I did this and it took a day or so for them to move everything over. But, everything looks good now. I'm still missing some of the books that I had bought, but only a couple, although I now have full versions of quite a few of the 'previews' I had. So, I consider that an even trade.
In the end they gave me more books than I had lost but it took a month to get there, so it's a mixed bag when it comes down to reviewing the experience.
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