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The "search" functions only currently work if you use the Mobi desktop reader. I'd suggest registering it for both your PC and your Gen3. That way you'll be able to do "Lookups" on the Gen3, and proper searches on the desktop. That's the way that I use it. The lookup function works fine on the Gen3.
The occasional "reboot" while using a dictionary is a known bug. I've reported it to Bookeen. There's a thread about it somewhere here.
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