As with robko, I am curious about where it fails. Before or after putting the userid and password in? Somewhere else in the steps?
Have you tried another computer? That could prove if the problem is your computer or the account. You could also try adding another user account to your laptop and trying to do it from that account. There might still be something leftover from the first install that changing Windows accounts would avoid.
The other thing to try is to create another Kobo account and see what happens. If that works, you should be able to get Kobo to transfer the books. Or at least someone here has said that Kobo suggested this for a problem they had.
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