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Either way, the firmware update is painless, and I don't think you can blow it to the point where you need to return the device. Just start over. I save a copy of all firmware releases on my system in case I ever want to go back.
At $11 for a 2G SD card, I found it convenient to keep a separate card just for firmware (but I am supporting 3 readers). This allows me to do a full format of the card every time before putting on the new update and not be offloading and reloading book files.
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