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I don’t think it’s a security problem at all, as long as the username and password are not sent in the clear via the wireless connection. The iLiad must be simply opening some kind of data connection (FTP, scp, rsync?) to the iRex servers with your username and password, and the address of that FTP server must be hardcoded somewhere in the flashed-system of the iLiad.
TadW: I’m for full disclosure in this case, it doesn’t look like a very secret thing to hide, anyway.
(BTW: hello, everyone, this is my first post on the MobileRead forum! I just got my iLiad yesterday and I love it!)
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