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Good News - it's working!
I tried to run the Reader Library software under Safe Mode and this worked.
Hmmm - something must be running on the normal system that is preventing it from running. It ends up it was Jungle Disk. As soon as I disconnected the drive, the Reader Library software ran normally. Jungle Disk is a GUI front end for Amazon's S3 service. I use it as an off-site backup for my photographs. Sony gets very low marks for not playing nicely with Jungle Disk. There are many other applications that use S3 for storage like Carbonite, JetS3t, and S3Fox Organizer. I'm betting that any of these might have the same effect.
Here is how to debug your system and search for similar issues -
Start Menu -> MSCONFIG
Click on the Startup Tab
Disable Everything that's not essential
(don't worry, it's easy to turn them all back on again)
Unfortunately a reboot is required for each change.
Keep disabling (and rebooting) until you get the Reader Library to work.
You might be surprised at the amount of unnecessary junk that is running.
Re-enable everything except what you think is causing the problem and then figure out how to deal with it. In my case I simply need to disconnect my S3 drive each time I need to use the library. I do that from the Jungle Disk control program.
Hope this helps,
PCH
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