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You do need to authorize.

BUT if you have got any DRM books you have already opened on ADE while unauthorized,

you won't be able to read them after authorization.

If that's the case and you still want them, post back before doing anything.

About the E_AUTH_NOT_READY

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Sometimes ADE gets its registration/activation confused and in a semi-authorized state.

Uninstalling and reinstalling does not help, and indeed installation can even trigger this state.

Unfortunately, it often then gives misleading error messages about what is wrong.

A common incorrect message informs you that the ID is already in use on another computer and cannot be reused.

Another is  "E_AUTH_NOT_READY"

This can often be resolved by completely removing any authorization using ctrl-shift-D to the Library screen on ADE (cmd-shift-D if on Mac).

Restart ADE, and then reauthorize with your (old) Adobe ID.

In extreme cases on the mac, the following extra step has helped some people.  Navigate to /Users//Library/Application Support/Adobe/Digital Editions and drag the activation.dat file to the trash. If you are using 10.7, see Access hidden user library files | Mac OS 10.7 Lion. http://forums.adobe.com/thread/1265248?tstart=0