Looks like a lot of folks that received Sony Readers were faced with issues downloading the latest update of the Reader library on Christmas. I had procrastinated updating mine, so I faced the same issue yesterday. Fortunately it is all working fine today at http://ebookstore.sony.com/download/.
I’m not sure how to take the outage. On the one hand, I am encouraged that there were that many people with a new Reader trying to update their device. On the other hand, I am disappointed that Sony wasn’t prepared for the spike in traffic. I mean, who would have thought there would be a spike on Christmas? (sarcasm intended)
It does also highlight one of the key differentiators between the Sony and the Kindle/Nook. You need the software to load new books as opposed to just doing it wirelessly (the new Daily Edition Sony does have wireless).
It was the perfect storm, however. They created a required update to the Reader Library (You could not access the bookstore without 3.1) after the Readers were all wrapped for Christmas, so you had a lot of folks needing the update on the same day. Not the best planning on someone’s part.