As a bit of an update, yes, I have the 32 GB KO2. I'm currently using less than a quarter of it. I was only trying to add one book today, and it did finally show up on the device about 15 minutes later. I guess this is normal. I was just being impatient because I'm starting a read-along today and really wanted the book.
This post explains how to effectively disable indexing, stumped.