OK. Just updated. The instructions omit a step. Before pressing the power and "right" buttons you must press the reset button on the back of the unit. A complete set of instructions can be found here:
http://www.ectaco.com/ectaco-posts/list/15212.page
The dictionaries do NOT work with the new formats. I was hoping for a better default English dictionary (the included dictionary can't define words as simple as "cogent") but that didn't happen with the update. PRC book pictures show up nicely. A large PRC dictionary crashed the unit as did a MOBI book I tried to read. Rich text books were properly formatted but did not have dictionary support.