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I agree, using wifi to set up your Kobo ereader is a good idea.
Even though the instruction sheet that comes with the ereader makes it sound as if the only option is to install the Kobo desktop software and setup via USB, it is actually simpler and possibly more reliable to set up via wifi.
Setting up via wifi means the Kobo desktop software is not needed at all, and avoids any problems with faulty USB ports, or troublesome USB drivers on some WindowsXP systems. (And on Linux systems it saves hours of frustration trying to get the Kobo desktop software running, only to find out that it is completely unnecessary.)
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