Mine was freezing during sync but I made a collection of the pre-installed books and as soon as I moved them from my reader to my computer and did NOT sync those, all seems to be just fine. Coincidence? I don't know for sure but I am happier that I can sync it without any freezing issues now.
So far anyways.....
I'm glad you got yours all worked out and they were able to exchange it for you.
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