Thanks for the replies guys.
pthwaite - How big are the books you are using? Mine vary from 500KB to 11MB.
JSWolf - I've tried the XP and Vista compatibility modes. That got the software running, but it still locks up, even on OS X
Michelleg913 - I couldn't get anything other than the V3 to install on my computers
igorsk - i'll give that a go
So do most people just load up a memory card and use that? Software is my day job, and I must say I'm shocked that Sony have released such awful software, I would be ashamed to do so!