The firmware gets installed via the Desktop, or via WiFi when you do a Sync operation.
When the Touch is connected via USB and the Desktop is luanched, the update will be downloaded to the Touch.
One thing I have just found is that if the Kobo is too hot (mine had been sitting on a table next to a window on a sunny day), the page turns become very slow. I was informed by reliable sources that
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The temperature of the display affects the waveform that the eInk display uses to render text. If you had it out in the peak summer heat you would have seen similar behaviour.
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I wonder if this might be affecting you in Mexico?