[Donald S]

I don't have the dancing squares problem (yet), but I'm experiencing other glitchy behaviours with Kobo firmware 2.0, such as:
1. Reader randomly returning to the Home screen during a read.
2. Reader goes into sleep mode, but without cover picture or notice at top of screen, then every few minutes attempts to sleep again.
3. Reader goes into timed shutdown, but again without cover picture or notice.
4. Reader freezes while attempting to change settings.
5. Artifacts left on screen after highlighting or making annotations, even after the screen does a full refresh.

Etc., etc...

I think the Kobo organization needs a whole bunch more Beta testers. At least then you know what you're getting in to. Ah well, patience, patience...