Have done what you said and it still doesn't work. I have recently upgraded to a windows7 computer, and installed the kobo on it, do you think this might be the problem, that I have the incorrect drivers or something? Also this only started when I went to kobo online and bought books from this site. I now have tow libraries and all my books on my computer and none on my kobo.
I can see them in my library on the computer, but not on the kobo. Does that make sense, if I open my kobo on the computer I can't see the books, but if I open the borders library they are on there! Hope this helps?
I can't seem to copy it at all! In fact all I can do is open the book and read it on the computer.