Thanks pilotbob!
I actually had read the thread about disabling DEP for the E-book Library executable, but I forgot about it. First thing I do when I install XP SP2/3 or Vista is force DEP on for all processes. Went in and added an exception for it and voila, started up instantly.
For reference for others:
Either Right click on "My Computer" on the desktop or click start and right click on "Computer" then from the menu that pops up, select Properties.
On the left side of the window that pops up, click "Advanced system settings".
From the dialog that pops up, select the Advanced tab, then click the Settings button next to the Performance section of that tab page.
From the settings dialog that pops up, select the Data Execution Prevention tab and click the "Add..." button near the bottom of the page and browse for the C:\Program Files (x86)\Sony\Reader\Data\bin\eBook Library.exe file and click OK.
Then click OK on those dialogs and close them out and that should do it.