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Does the web browser on the Story HD open at all? What does it show, or is there an error message, or what happens when you try?
The Story HD supports regular wifi security (wpa2 etc.) fine, but yours sounds like a firewalled environment with a forced proxy (the proxy being what makes the login form show up in the browser when you try to open any site).
Although the Story HD uses a browser for the bookstore, it also uses direct connections for time synchronisation, Google authentication, firmware updates. If this is blocked in your environment then it might simply not work at all.
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