How to Authorize a Kobo Reader

[Gpaw]

I just downloaded ADE 4.01 on Windows 7 Pro, authorized the computer - all OK.  ADE shows that my Kobo Reader is connected.  When I click on the gear icon beside the device, it provides a drop-down menu; one of which is Authorize Device.  Clicking on this gives me nothing.  As a matter of fact, all items in the drop-down menu do not work for me.  What is the secret on authorizing my Kobo reader such that I can read downloaded books??  Please note that ADE does allow me to drag-drop a book to the Reader but since the Reader is not authorized, the book cannot be read.  I'm sure others had similar problems and can help here.  But I am a bit concerned as there are lots of community posts with unanswered questions pertaining to ADE.  Someone, please help.

[Gpaw]

I got no reply here in a couple of days.  I contacted Kobo directly and was asked to de-authorize, uninstall DE 4 and download Digital Editions 2.0.  OK, I did this and my computer was authorized after installing and the Kobo reader showed up as a device.  I go to authorize the device and found that the device was already authorized.  So, go figure out the mystery.  Because I don't know the why and the wherefore but I do have my reader authorized now and am able to transfer books to it.