Hi,
had the same problum until yesterday when I solved it by chance.
It is really an authorization problem,unfortunately it is not solved by de- and reauthorizing your reader via ADE on your PC. You have to reauthorize by downloading a book (with DRM) with the built-in webbrowser.
When starting your download it will ask for your ADE Reg., as your device is currently not authorized,then simply enter E-mail and password and everything will work again.
I have absolutely no clue why you have to do it this way, and connection with PC doesn't work, but as long as it works...
Finally I strongly recommend you follow wallcrafts advice