Painter Pete,
Do I have to update the reader? No but it's recommended.
Can I simply connect it to my computer and it will authorize with the current Kobo Desktop installed on my computer? Yes.
All the info about the updates for the kobo reader :
http://blog.kobobooks.com/kobo-eread...ary-functions/
Also, if you have problems you can reset the kobo ereader back to factory settings with a paper clip and put it in the hole in the back of the ereader, ( be sure to backup the books in a folder on your computer) incase you ever have a problem with the device.
Top Ten Questions about kobo ereader;
http://kobo.intelliresponse.com/inde...&interfaceID=2