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Southwest, which version of the firmware have you got, becuase I had a similar problem to you when i first got my 360. You need at least 14.2 and as the other user said you need to authorize the device with ADE.
Also are you downloading to the device directly or to a memory card within the device. Be aware that the device and the memory card will need to be authorized separately on ADE. Also do not authorize too many times because ADE has a 5 device limit to it.
Hope you slove your problems. ADE books are really good but also a hint is to try to get Epub format books that are ADE protected rather than pdf ones as they display better on the pb360
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