For some reason, Calibre (updated, running on a Mac) won't actually let me "Send to device" with the Touch, but it will "Save to disk"...right to the mounted KT's Documents folder. That's how I added my collection from there. Seeing this post, I just tried sorting by author, and everything copied in this way from Calibre appears on the Touch just fine.
If you do decide to return it and contact Amazon re: the $40 surcharge to remove Special Offers, do post what they say. It's a valid question, I'd be interested in the answer.
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