Hi Paul,
Sorry to hear you've been having difficulty. I'd like to try and diagnose the issue. Would you be able to download Microsoft DebugView and have it open at the same time when you see the problem? You can download DebugView here:
http://technet.microsoft.com/en-us/s...rnals/bb896647
When you have it open at the same time as the Kobo Desktop application, it will collect information about what the Kobo desktop app is doing.
1. Turn on Kobo Desktop
2. Turn on DebugView
3. Try and set up your device
4. When you encounter the error, copy and paste what you see in DebugView into an email and send to shasan at kobo dot com. (me)
We'll take a look and see what's wrong.