I've read in other threads that the transfer via usb problem was caused by updates to various browsers and that the way round it is to enable pop-ups.
I haven't had this issue myself because it's been a while since I've updated firefox, despite (or because of) the nagging.
I've very recently downloaded freebies from Amazon without any problems at all. I still see the Transfer Via Usb. For me, Amazon doesn't seem to have changed.
@Loyd: you might want to ask that question in the Calibre part of MobileRead. You will also encounter issues with DRM. Google Apprentice Alf.
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