I'm having the same problem using ADE.
I upgraded the Kobo e-reader using the desktop program from Kobo, no problems with that.
But, I also bought my Kobo in Australia with the Borders desktop program. I now can no longer sync with that, so I can no longer access the books I had bought through Borders (this program doesn't seem to let you download them).
I then connected to ADE.
Most of the time ADE won't even recognise my Kobo. There is no option to authorise the new machine.
Occasionally, after de-authorising and authorising the computer and unplugging the Kobo in various combinations, I am able to get the ADE to recognise the Kobo.
BUT, the Kobo will now no longer read ANY of my purchased books. They are ALL locked. I have tried re-installing ADE but that doesn't help.
So, at this point I have spent about $500 (Kobo reader plus books) on a machine that can only be used to read free books I can easily get off the internet.
This is driving me crazy!
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