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All you need to do is update the firmware on the Kobo Touch, this was a bug a few months ago.
Also with the updated firmware you should get;
1. Highlighting for All books no matter were they came from.
2. Multiple Bookmarks for all books
3. Notes for all books, note syncing for Kobo books.
4. Faster page turning and a crisper text.
5. The option to either display "Shortlist" "Recommended reads (Based on your purchase history, it doesn't read your sideloaded content)" or "New Releases" in a carousel on your home screen.
6. You can check the time while reading by opening the menu.
Some people are not liking the carousel but I really like it personally. I usually set it to display my Shortlist, so if you don't like the recommendations or the new releases you can just set it to that.
Last edited by The Terminator; 01-10-2012 at 12:22 PM.
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