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Being really practical I would get everything off the Iliad and on to a laptop. I've just spent two years lugging a laptop around and reading academic books and papers off an LCD screen. It's a pain in the whatsit and it makes my eyes water after a couple of hours of reading. I've just acquired an IREX DR800 for those very reasons. But, if I reach the point at which using the unit becomes a hindrance rather than help in my studies - and not being able to trust it would be a hindrance - it would get put in a drawer and used for leisure reading, or put on the Flea Market here.
As a less radical solution you could take it to your local computer shop (not chain store but little bloke who builds computers) and ask them to test the USB. It would be a lot less than 65 quid and they might be able to suggest a solution.
Good luck!
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