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This is not the first time that Sony has renamed their software and changed the storage location. Here is what is happening. All of the files that you imported from your old library into the new Reader software are still linked to the old location: Document > My Books > Reader Library. Anything new that you download into the Reader software is going to be stored in the new location Documents > My Books > Reader. Your library will be split across two folders now. That's part of why I decided not to import since I had the advantage to learn from past experience.
I currently have both Reader Library and Reader installed so I can go back to the old one if I want. There is no way I'm connecting my 950 to the new software yet either.
vxf, here's what you want to do for your 950. Go to Settings > Application Preferences > Page Sync and turn it on. That is the setting that will now transfer info wirelessly between your computer and your 950. Since I didn't import any of my new books, I just downloaded one of my past purchases into Reader that I know is already on my 950 with annotations. The first time that I opened it in the Reader software it asked me if I want to go to the last page read. I said yes. All of my notes were also transferred.
When you are reading a book on your 950 and you know that you are further along on the computer, you need to tell it manually to sync. Within the book press the Options button. Then select Page Sync in the Options menu. It will tell you the last read page and ask if you want to go there.
I just tried a test with a Kobo book. I imported it from Reader Library into the new Reader software. It is already on my 950. I am able to sync between it and my 950 so it works for anything in your library and not just Sony bookstore purchases.
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