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My software does the same.
The first time it did it, I followed a guide of which files to delete after uninstall, reboot, reinstall etc. This fixed the problem at the time. I did a quick search to see if I could find the guide for you, but couldn't - it's on some guy's blog.
Reader Library failed again, and no longer loads when you double click it. Tried the solution again - nothing. I've given up on it.
I don't see it as a deterent to using the hardware: if Sony don't want my money for books, that's their choice. I know from those who have contacted Sony that they are aware of the problem, and term it a 'compatibility problem', but can offer no solution.
Not great, really, is it?
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