Thanks all for your help...
From the replies I got, I gathered this was a case of corrupted database; Since the device was not too full of books (only 50ish, of which only 10 read and 1 reading), I did a factory reset, put the books back, and everything seems to be fine.
My son was so happy to get correct functionality back. (I can imagine this is quite frustrating at an age where technology is still pretty much magic - he thought the reader would 'want him' to re-read all pages 'it thought' he hadn't read yet. That's not very stimulating for the budding reader)
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