There was a recent issue with larger downloads (maybe >1.3 Mb or so IIRC) being broken in a newer firmware. I know Kobo are aware of it and I can't remember if it has been fixed in the most recent firmware or not since I don't use that function. You could try sideloading the most recent if you're not on it. Kobo staggers the rollout of new firmware so even if your device isn't finding a new firmware on sync there might be a newer version (see the Kobo Developers sub-forum at the top of the Kobo forum for links/instructions -- it's very easy to do even if you're not very techy). Otherwise do a search of the forum and there'll be some comments as to whether it's been fixed yet or not.
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