Had the exact same problem when I updated my EE big with the new Ermine with Market. Same error adding to library, and couldn't open or save journals or event the calendar.
I downgraded (to 1.6) and tried the update again with the library in internal memory. Same problem. I tried it again (downgrade/upgrade) with the library already on the SD card. Still same problem. So I went back to the original Ermine, and it was fine.
I tried again a few days later (with the library already on the SD card), and this time everything works properly. I can add epubs and pdfs to the library, make new journals, open and write on the calendar. I have no idea why it worked this time, so try the same; downgrade and then upgrade again. Maybe a few times.
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