I am currently waiting for a replacement Kobo as the display on mine inexplicably went "wrong" (lower half did not display correctly). Took it back to Borders - they asked if I'd dropped it - I hadn't, but reading Ea's post above makes me wonder whether my dogs might have stepped on the screen. They are well-fed (though not fat!) chihuahuas

I'm glad Borders are not arguing with me though. (we could have gone on and on: "You dropped it!" "I didn't!" "You must have!" "I swear I haven't dropped it!" etc)
Apparently Kobos are still in high demand here and black ones especially and so it's going to take a fortnight or so until I get my replacement. I actually have an iPad but find I enjoy reading more on the Kobo. (eInk is way more comfortable on my eyes.)
As to how I transport my Kobo, I have been using a nylon document holder which has a mesh pocket, with the Kobo sandwiched between a folded Manila folder...