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So far it is not automatic. You have to ask iTunes for the update. I am still syncing since this afternoon. Almost there though. Hopefully nothing is lost.
Just finished syncing and it took hours! Nothing is lost, phew! All my Stanza ebooks are still there, it opened at the page of Dorian Gray where I had stopped reading this morning, my Audiobook Hannibal: One Man Against Rome is also at the point where I left it after cooking the dinner last night!
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