I tried launching ADE with ProcMon running. No access to any of the removable drives apart from looking for a \.adobe-digital-editions\activation.xml and \.adobe-digital-editions\device.xml; neither of which were found.
I will however try setting up a brand new install of ADE under VMWare and repeat.
I BET the problem is that the initial ADE setup has NOT correctly completed and as was mentioned above, a whole computer scan is being performed.
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