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Maybe you should send this is B&N instead of us? Honestly I suspect that you got some automated response telling you to close the account and make a new one while the person on the other end didn't realise exactly when that entailed.
I agree that this seems like a severe problem. The inability to log-on on the Version 2.0 but complete fluidity when applied to the website, version 1.0 etc. The most likely problem seems like B7N have accidently enabled something that disables you from Version 2.0. I'd ask them to check for that, and then to see why that is even possible over 1.0.
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