I'm so sorry to hear that g1v. I also had my Sony since December 2007. I actually purchased it online on the 1st and received it on the 6th. It had problem holding charges and I returned for warranty service on December 1st 2008 (talking about cutting it close), on December 12, I received a brand new reader from Sony and they charged me $29!
So now, my reader is only 2 months old! Call Sony and see if they'll replace it for cheaper then buying a new one. Also, the internet is cheaper then Sonystyle stores. Good luck