I have the same issue. I was using a 16Gb SDHC card in the slot, but I read here;
http://kobo.zendesk.com/entries/1705...reader-support
that the kobo only supports <4Gb SD cards. Bought a Sandisk 2gb today and it still crashes.....
Any official comment?
Otherwise - very satisfied with the reader! I've only had it a few weeks, mine came out of the box with v1.4 of the firmware so I never saw the previous fast boot & cover art version. Sounds good tho.