Well, I sent my PRS500 off to the Texas repair facility today. Let's see how long and how troublesome the process is. Hopefully, it will be updated and returned within the 14 day (or so) timeframe they mention. Printing out the UPS shipping label was uneventful if you ignore the fact that it wasn't until the 5th try that I realized that I had to turn off the pop-up blocker on my browser before the shipping label could be sent to me.
I read, with interest, the comments above regarding the 500's virtues and shortcomings. Shortcomings or not, I feel compelled to state that it does what I want in a reader. I would have liked to see this update also include the ability to create folders, but since I have never had more than 100 (or so) books on the reader at any one time, it's not a major problem.
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