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I've never heard of that happening before but it doesn't mean it hasn't. Fortunately I've had no issues with my touch. I can help with the book though. I was distracted by my four year old as I played around with my touch Christmas day exploring the settings and the like. While distracted I managed to do a factory reset. After setting everything up again and installing the newest firmware I synced to my kobo account and my purchased books appeared. My understanding is (and someone can correct me if I'm wrong) that a copy of purchased books is maintained in the cloud (unless you delete them) and if they are listed under "I'm reading" they will download to your touch when you sync. Hope this helps.
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