When you buy a book that has Adobe DRM, you will download an ACSM file. This is used by ADE to download the actual book. You then connect the device while running ADE and authenticate the device to you Adobe account. After that, you use ADE to send the book to the device.
Of course, removing Adobe DRM from a book is simple, but, you need to do two download steps first. And you want to use ADE 2.0.somethingorother. DRM removal from later versions isn't possibe.
As to what ADE reports, I don't know. I don't remember any discussions about it, one way or the other.
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