When the eLibrary on my pc froze whenever I inserted my reader, it was caused by a corrupt library on the eReader itself. Simply deleting everything on it (using windows explorer), restarting and reconnecting did the trick. Buggy piece of software in my experience.
As for your books; from what I gathered it's not all that impossible to remove the DRM, or simply download DRM-free copies. Seems only fair, though I shall not discuss more details here, what with the forum policy and all