My new Literati will be here tomorrow. I saw a question that came up a couple of times but I don't think it got answered - the "missing" book files. The Kobo apps don't store ebooks as ePubs. If you use the apps to get the books, the book files are stored in a database. Kobo offers ePubs, however, so you can download those from the website using Adobe Digital Editions as described in a previous post. (Even if you've already gotten the books through the app, you can go to the Kobo website and download them as ePubs from your list of purchases.) It's really a matter of preference, but I prefer to use the ePubs and skip the Kobo apps whenever possible. I'll probably download the free books but I'm not a fan of Kobo, and there are plenty of other places to get Adobe or non-DRM ePubs.
Regarding the Literati firmware, not a whole lot of information has gotten around yet. There is a small group working on hacking it, and a new forum has been started:
http://forum.literatidevs.com/. Not much there yet, it's brand new, as in only days old, but I think there's a post on there about obtaining the update file online and updating from the SD card instead of wifi, which may be of interest to those with wifi issues.
If you want to see the inside of a Literati:
http://nightflyertechblog.blogspot.com/.
I'm already in the process of converting some of my ebooks for the "test drive" when it gets here tomorrow. I can't read for too long on an LCD, but there are times the backlight and color will come in handy, and for $40, I couldn't resist. It's interesting that what could be considered a spectacular failure for Sharper Image is turning into the first cheaply priced ereader. I can only hope that those who have trouble with them seek help here and elsewhere before throwing in the towel. Seems like persistence is paying off for most people so far.