Exact same issue here.....
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Never did get ADE to recognize my device. But I am now reading my Adobe EPUB library books on my reader.
I authorized my device using the eBook store accessed through the Reader Library program that came with my reader.
After having device and computer authorized I then had to download the library books again. They reader was giving my an error on the books that I had downloaded prior to authorizing my device.
Don't know if that helps at all.
I contacted Sony support and they blamed ADE
I am still waiting to here back from Adobe.
Thank you for your input - it was comforting knowing it wasn't just me. I gave up on the Adobe part of it. I can at least get the ePub books now so I must have done something right along the way. The feedback I got back from Adobe was cookie cutter (basically the same text I found in "Help"). Anyway - I'm dealing okay now.... Good luck with yours too!
You didn't mention what computer you are using. If it's a Mac, then it won't recognize the Sony reader. This is mentioned in the release notes. Even if it's a Windows machine, I think there is a problem with the newer Sony readers--the Pocket (PRS-300) and Touch (PRS-600). I've resigned myself (I have both types of computer available) to just using the Sony Reader software.