Have you tried going to a friend's house to go through the process (in case there is a problem with your wireless router). A library or coffee shop may work too, if you select a Facebook account to register with. My thinking is that the Facebook registration pulls up a webpage, which the library or coffee shop will reroute to their login page. Once you've logged into their service, you can back out and register normally. But that's just an idea, I haven't tried it.

Or wait a few days. Given that the location in your profile is a bit off the beaten path (sorry, but I'm a Vancouverite ) it is possible that there is enough extra latency in your connection that your connection is eventually being dropped simply because Kobo has a tonne of other users who are trying to upgrade.