I can't remember exactly...

I do know I have ADE was open then I put my SD Card in my SD Reader and either a window pop up asking to authorize it or it showed up as a device in the ADE bookshelf list and I clicked on it then it ask me to authorized. Either way when you go to drop a book from ADE to the device in the ADE list it should ask to authorize it.
I never plugged my reader into the PC though it works fine for me with just my SD card authorized. I know some here had to do both though to get theirs to work but for me I just did my SD Card.