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I just encountered the same problem with the Sony reader trying to sync up a purchased book to my 4GB SD card on my PRS-700. I had no trouble syncing up any of the classics I redeemed, but my first purchased book caused the hang. I figured the card had been corrupted somehow. I closed the reader, reformated the card, opened the reader, and the sync went flawlessly. Try it and let me know if it works.
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