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First, all books you bought from Sony CONNECT store can be redownloaded after you reinstall. Some here have already had to do that.
They are located in the "My Documents\My Books\CONNECT Reader" subdirectory. If the file type is "BBeB Book" they can be read by any Reader. If they are "BBeB Secure Book" then they have DRM (Digital Rights Management) and are restricted to devices on your account alone.
Hope this helps.
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