Every single problem I have experienced with library books and BAD LOAN messages is the fault of ADE 2.0. The moment I uninstalled the program and reinstalled an earlier version, my library loans started working again.
It is remarkable how deeply flawed the update is and equally how ADE tech support attempts to resolve their own issues by attempting to charge $68 to find the problem in their own software. Frankly I was really disgusted to see that the problem was their issue and how little they have done to correct it after months of questions and complaints from their own users.
Thank you Roger Osborn for the link!
It is now July 12 2013 and the problem still exists.
Is there no official fix or answer from Adobe?
Adobe appear to have no interest in fixing the huge number of bugs in the abonimation that is ADE2.0.
It appears that they moved the test team away from ADE before they created ADE2.0,
and now they have moved the development team away as well.
Make sure that you have authorized your computer ( under help in adobe digital editions) . I had the same error that you had until I entered the information to authorize ADE and now I do not get the error