Same problem for me and no one at Adobe has the answer!!
In order to fix this error message you may follow the steps as given below.
Firewall, anti-virus, and proxy software can intercept the activation request from Digital Editions to the activation server. If you receive an error beginning with "E_ADEPT_IO" (such as 'E_ADEPT_IO ActivationService Info Error%20#2032'), then your machine isn't allowing the connection to the activation server.
To resolve this issue, modify your firewall or other software to allow your machine to connect to the activation server at http://adeactivate.adobe.com/.
In Windows XP, add Adobe Digital Editions to the firewall exceptions:
I hope this will help you !!!!