I've wrestled with the same problem since Christmas Day. Neither Reader Library or ADE will allow me to add my DRM purchases, quoting the error message you've described. I just haven't been able to find a work-around solution so my PRS-600 will go back to WH Smith tomorrow. As a Mac user I will wait to see what Apple has to offer in 2010.
The Sony website is appallingly slow, quite then worst I have encountered in 14 years of internet use, I will not buy Sony products again.
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