Thanks for your advice. I did the factory reset several times, so it doesn't seem likely to be the download. Would manually downloading the firmware void the warranty?
I can't even turn it off and on without having to do a pinhole reset. If I start reading and set it down long enough to go get a drink from the kitchen, I have to reset it when I get back. I've tried an all-wireless setup, all-desktop setup, syncing on the computer after wireless setup and vice versa... Nothing gives me a stable environment.
So I'm going to exchange it tomorrow and, if the store has wi-fi, set up the new one while in the store to make sure it works. I love the device itself - the page turns are much faster and less "blinky" than on my Sony PRS-T1, and the light is very even and not as harsh as I expected. It's definitely worth another try IMO.
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