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I have experienced a similar issue with my Glo. At 1%, the screen would start to flicker, very annoying. I am not 100% sure about this, but I think the flicker happened with side-loaded books as well as with downloads from the Kobo store. Also, with the setting at 1%, it frequently happened that the light would not turn back on after waking the device, even though the software claimed the light was switched on.
I brought my Glo back to the store the next day b/c of a few dead pixels in exchange for a new one. So far, I haven't experienced any of these problems on my replacement device.
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