My Story HD can still connect. I am on version 1.34. If I go to Settings>System Wizards>Device Update Wizard, it connects to the update server and returns a message (No new updates).
The Google Bookstore is no longer available to the Story HD. You can no longer purchase ebooks through the ereader. However if you add books through Google you can still download them to your device by refreshing your Library under settings. Then when you go to the Google Book Tab you can "download all ebooks" under options. You of course have to have your reader signed in under your Google account.
It sounds like you are experiencing an internet connectivity problem. Do you get the Wifi icon at the top right? If you do then I'm at a loss, hopefully someone will come along to help you out.
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