Just to throw an idea out there, but does the device have to be registered with ADE before it will copy the book to the device?? ie; unless ADE thinks the device is registered with it, it feels it doesn't have permission to copy files to it?
I strongly suggest ignoring ADE and as others have suggested just copy the book straight to the reader. Can the Kobo download .epub from a web site? Could log into your baen account from the Kobo and download the ebook that way.
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