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A couple of possible causes:
1. The device has been dropped (accidentally or otherwise) causing the button FFC to lose contact internally.
2. One of the function buttons is stuck in the depressed state constantly making a circuit and stopping all other function buttons from working. Generally the 'D' pad is a favourite - the 'left' pad is the weak side and too much downward pressure causes the internal weld to fracture or weaken!
As for the yellow LED - you won't always see it - it normally stays 'steady' from initial power on, and flashes while initially retrieving data. If it doesn't come on at all - refer to point number one above - they break easily!
If all was fine until you transferred books, try opening a separate folder on your PC mark it 'eReader files' and transfer EVERYTHING to it. Go to 'My Computer', right click on the respective drive letter for the Reader, then select FORMAT - format the Reader, disconnect from the PC and see what happens. If it's still the same it's a hardware issue and needs to be stripped to see why. If it cures it (unlikely but you never know) start transferring the files back folder by folder until you find the folder that caused the issue, delete the folder from the Reader and start going into it by sub-folder and transfer again - keep doing this until you find the faulty file(s) / folder!
Hope this helps.
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