Thanks everyone
I emailed KOBO about the problems, tried their suggestions to no avail.
They then sent me out a prepaid package to I could courier the KOBO back to them and sent me out a new KOBO within 2 days.
The new reader works just fine, I am very happy. I didn't need a receipt or anything, I guess since it is a relatively new product, it isn't more than a few months old at the most.
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