I am happy to report that kobo fixed both my issues. I received my kobo back after a week, and it worked. Yay! It did take another week of emailing them about the one book I had that was corrupt but they have now replaced it.
Although I had some frustrations (they need more people working at customer service...one night I was on the phone waiting for 2.5 hours and then finally hung up), once I got in their system they were great and very helpful. So thank you kobo.