When you set-up a new Kobo device, it downloads the latest firmware and installs it. Then it downloads any books in your account and puts them on the device. Has the initial set-up been done successfully? And how long did it take? The file is about 88MB in size, so it could take a while on a slower connection.
The other way to download books from the Kobo shop is using the Adobe DRM version. The books are downloaded via Adobe Digital Editions and then that is used to put the book onto the device.
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