Ian, on the original Kobo reader, you will need to download the ePubs from your Kobo account (it's actually an .acsm file; open in Adobe Digital Edition to download the ePub). You can then drag and drop that to your Kobo once it's authorized in ADE.
I'm not sure if the long-awaited firmware update will include support for images in native Kobo files on the original Kobo, but this is not a horrible solution.
Last edited by dmacmart; 11-23-2010 at 12:07 PM.
Reason: typo
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