This is actually a fairly common question, I've noticed for Literati and Nook and Kobo users.
have you used the search function to the side. Even just entering the word Literati will give you some good leads of people who have had exactly the same problem - and have solved it. (They are always very happy when they have solved it - you can't miss their posts!)
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has anybody else noticed that it really does not seem to matter which ereader you are trying to use. They all seem to have the same problems and the same notifications from ADE. Is it because they all use ADE and ADE does not need to help fix these problems because there is no competition. I just got off yet another web support effort and was sent to the forums to find my own answer - really!
If ADE is finding the device but wont let your transfer because of authentication then what I have found is if you click on the device, in the library list in ADE, then click on the options button at the bottom of that page it should give you the option of authorizing it there.
I have also run into another problem similar to that. It turned out the computer was authorized with an anonymous user. To deauthorize the computer you need to press ctrl + shift + D. ADE will restart and you can reauthorize the computer with your actual adobe ID
Hope one of the two will help you. If so let us know.
This is exactly what happened to me - no answers to what appear to be a lot of common issues - just a referral to this forum. Customer service???