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I updated yesterday and no problems. I was once more going through the memory/factory reset error and I had chosen to ignore it. Now after the update the error message is gone.
It's too bad it took as long as it did for Kobo to fix the problem because it really is a great device and I think their credibility went down a notch or two.
However, with this update it looks like it's back to being a great device.
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