Success!!!!
Microsoft replied back to my last message (saying I couldn't update my profile) that my previous login did not exist or was deleted and that I would have to open a new account.
I tried all week to update my profile but could never login. Somehow in my delirium I had saved under favorites the update profile page. When I saw it I opened it up it appeared to still be current, not the normal "this page has expired" crap.
So I updated to a @gmail.com account and it appeared to take. So, with shaking hands, I reactived my pocket pc and was able to access my books! Finally!!
Hope this helps somebody out.