I’m sorry about your WiFi troubles. Doesn’t sound fun at all! In fact it sounds more like a hardware problem (maybe a loose wire/cable/connection or defective WiFi receiver) in your Aura HD... I’m afraid I can’t offer any useful advice.
However, if you do magically get it working... I don’t think the Aura HD would support library book borrowing straight from the device, even with the newest firmware. The OverDrive integration is only for current models. (Library borrowing does still work through ADE, but of course you don’t need WiFi for that.)
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