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Hi like00111,
I had a similar problem with a new Aura HD. My Aura HD would charge up the battery through the usb cable ok, but the PC would not recognize it. The "e-reader" button on Kobo Desktop would not highlight-up, and I could not connect to Calibre, but I could load books onto an SD card and load the card on the Kobo, and the Kobo would read what I put onto the card ok. I ended up calling their customer support number and resolved the problem through interaction with them (eventually a new unit was sent out to me). You may want to first try using a different usb cable and or try to connect your reader to another PC just to establish where the problem lies before calling them.
Just my 2 cents with them, they are very friendly to talk to over the phone, and are very helpful within their skill radius, but their diagnostic skill set seems to be limited to "simple" problems. None the less, your calling them will get your problem registered into their system so it can be dealt with.
best regards,
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