no that doesn't make sense to me. When I had gone over my device limits i simply sent them an email, told them what happened and they reset it so I could install my new device.
They need to get rid of that device limit or fix it so it doesn't see every new firmware update as a new device. really it should be unlimited devices. I'm going to have aproblem again soon when trying some new devices. Maybe i should contact them ahead of time to ask them about it.
edit - btw i just got an ADE update when i started up- anyone know what this update was for?
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