Judging from seveng's post, I suspect that the VM is not necessarily the culprit in my case. Given the various threads here in which people are having the same problem of not being able to launch 3.1 on various Windows machines, it appears that this issue is more convoluted. What the various machines in which the software won't launch have in common is a mystery. I tried installing the newer build of the software to no avail. Perhaps some later version will work for me.
Meanwhile, for Mac users, running the Mac version of 3.1 does work. Once you have downloaded a book into Reader Library from the Sony Store, you can open up the PRS500 as an external drive and simply drag the book from its folder on the Mac into the media folder on the Reader. Not elegant, but it works fine.
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