I currently updated my mini to the newest firmware. On the first look, everything seems working as expected.
Most of my book are sideloaded kepubs, I only have very few regular epubs on my reader, but every of them is loading without problems.
I think the problem with your epubs isn't firmware specific.
WiFi ... don't know what you're talking about. I once set it up but never use it. It's working - when I enable WiFI login to my router runs fine and I can access the store. So I never thought about it.
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