I am interested in your conclusions, as my T1 is acting up, too, when trying to use the dictionary.
I had it rooted for a while, but unrooted it again. It always was stable. Then I installed the "June" reader (non-rooted version), which works great, but after a while the device became shaky. But there can be so many reasons for this, so I would not bet on June reader being the culprit. (Might be badly formatted books as well, or a damaged file system).
I might try going back to the stock reader and watch it for a while.
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