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Hi emhornbee,
I was very happy with my Cybook Gen3 and its ability to read epub books, until I ran into the same problems you are describing this past weekend. I tried reading 3 books on it and I got the same reboot cycle you are mentioning.
The solution for me was to go back to Mobi. I used Calibre to convert all my epub books to mobi and everything seems to work fine now. Sure it's not the best solution but buying a new ereader so soon is not an option for me and this gives me the ability to continue buying ebooks and reading them on my Cybook.
Regarding the memory, what you are referring to is the storage capacity of the device which is of course enough for any ebook. The memory that plays part in this problem though is the main memory (RAM), which is only 16MB in the first and second edition of Cybook Gen3.
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