@rdgroulx: As PeterT said, contact Kobo. The description sounds like an issue with the latest firmware update. They know about the problem and have been replacing the WiFi with a refurbished Touch.
Other than that, you can try putting a new image on the internal SD card. I don't have a copy of one for the N289 version of the WiFi (or at least not somewhere you can download it from). But, there is one available. A request for it in this thread should get a response.
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