Power cycled it many times, assigned static IP (being sysadmin myself I tested it with different models of wireless routers just to exclude certain router as a reason), tried different modes of security (seems it doesn't matter at all), still it connects once per reboot and as soon as it goes to sleep (or just stays idle for several minutes) it can never connects again until reboot. Never had that problem before 3.x - there is something fundamentally broken in that new fw. Will have to talk to Kobo people although it never once helped me before
