Error transferring borrowed books to Kobo

I have a Kobo Touch, used previously without problems.  No problems with downloading from public library prior to updating to windows 8.

When I attempt to transfer a borrowed book from the library now, I get an error message Copy_Not_allowed - No permission to copy the book.

I have tried reinstalling ADE both 3.0 and then 2.0 without success.  I have tried several different books.  I do not seem to have a problem with books I have purchased.

I see others have had a similar problem, but I do not see any answer or advice.