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Windows XP. Exising Borders Kobo device.
On startup of the Borders Desktop, it told me there was a device software update available. I acquired the appropriate paperclip and went through the process. After telling me to reboot the device by disconnecting and resetting with the paper clip, the device restarted, went into 'installing the software mode' for about an hour. I reset the device, the start up screen came up, the status bar moves all the way to the right, and stops there. Multiple resets don't change the symptoms. The borders desktop software doesn't recognize the device.
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