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I was having the same problem with the eHarlequin site not recognizing that I had an activated copy of MS reader on my old PC. I just downloaded new books on my work PC and then was able to email them to home. When that PC crashed I got a new netbook and now everthing is working OK.
If you still have access to your old PC you could download convertlit.gui and decrypt your old files on that machine and then transfer the freed files to your new PC.
If you are trying to download a new MS Reader file for the first time to the new PC and it still won't work I would contact Microsoft support.
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