I have the same problem with my touch as the original poster. When the touch is powered on the books on the SD card just do not show up. If I eject the card and reinsert the books appear quickly. If the card is not present when the touch is booted then it turns on much quicker so it must be doing something with the card but it then just ignores the content.
This problem has only appeared with 2.6.1. I did a factory reset and reinstall but the problem has persisted so it is not a glitched install.
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