Thanks, it seems to be a great reader, I'll be a lot happier when I can actually read a book on it!
Here's where I'm up to. I've now purchased an epub book also, and I have transferred it to the Reader via Calibre. It also will not open due to the 'Protected by DRM' message. So, I have two books on the Reader, one borrowed and one purchased, and neither will open due to the DRM restriction.
I'm wondering if the problem might be this. When I installed Adobe Digital Editions I was asked about permissions for other machines and I chose just the PC. This may be the Adobe Account you referred to redbees. Navigating around ADE I can't see any way I can change this. Should I reinstall?
I appreciate the help, I'm sure I'm getting close now, the different softwares and their functions is just a little unfamiliar to me. I'm sure glad I've elected to do this prior to giving the Reader to my wife. If she were trying to set it up on Christmas Day she might end up throwing it at me! On the other hand, she could possibly set it up in 7 minutes!

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