Hello blackcondor, and Morcheeba.
I have the same problem with the upgrade error. I have done so many factory resets, that my finger has a permanent "+" embedded in it!
I have spoken with Kobo customer service, and exchanged dozens of emails with their Tier 2 department, but still have no satisfaction.
At first they were saying that it was a server overload error because everyone was trying to update the Vox's they received at Christmas. But, after trying unsuccessfully for 2 and a half weeks, they've changed their tune and are now saying that it must be a defective model. I exchanged the original reader 5 days after Christmas, and was still having the same problem. I then exchanged the reader for the third time yesterday.
I cannot get past the update screen. I was told that it is a fluke that the second reader wasn't upgrading as well, so therefore it must be our wi-fi. Not so. I have tried doing this upgrade on 5 different wi-fi's, 3 of them were T3's.
Kobo's new answer to these extremely frustrating problems? Return it to them and they'll send a replacement, but it may take a few weeks.
Is there anything I can do? Three readers, all with the same results.
Joyce
P.S. We have reset the password, and all set-up features, on our wi-fi at home, and as I said, we've tried it on 4 other wi-fi's as well, so I don't think it's an internet issue. We've also disabled the firewall to see if that made a difference.