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I'm starting to have similar issues with wireless network after I installed a new 4GB CF card. Previously I was always using the internal memory and never had an issue.

I did an experiment.

I set the news button to open the folder on internal memory, and put my network package there. Then I yanked out the CF card, and start my wireless network script to connect. After it's connected I then start a ping program from my computer to ping the ereader. At this point all seem to work until the moment I insert the CF card. Wireless network dies immediately.

The second experiment is to start the network while keep CF card always inserted. Note that I still start the network script via the news section stored on the internal memory. I was able to start wireless network many times, and it works. But as soon as I SSH into it and start to SCP files from a remote computer, the wireless network becomes rather problematic, and often dies after the SCP finishes.

The third experiement is to start the network script from a directory on CF card, it actually fails to start very often. I tried the ping-from-another-host method before I start the network, it works sometimes, but also fails some other time.

So definitely the wireless network has got some bug related to acessing external storage like a CF card, because every time I insert the CF card, the wireless network dies. Very reproducible, EVERYTIME. I wonder if it's my brand new Sandisk 4GB CF card that's causing the problem, or indeed an issue with iliad software (or hardware). Can somebody try it and confirm if you have the same problem?