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Dave - I have a very similar problem with Stanza and my iPod; it looks like the transfer worked in iTunes, but Stanza on the iPod won't open the file; it insists on looking on the internet for it. I wonder if the Kobo app would let you read books you bought from Sony; they use the same DRM and the Kobo app lets you drag and drop files from iTunes onto the iPod. I'll have to try it when I get home tonight....
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