Sorry Nick that your unit is defective. Mine is working exceptionally well. I even used Calibre software to convert a book in mobi format to epub and that worked well. No font problems...well actually the first time yes until a new version of Calibre was made available which included the Kobo setups.
Every function on my Kobo works. I had a defective sleeve from Chapters.ca that I returned but that is about it.
I hope you can get a good unit.
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