I love my Kobo Touch, but it was a bit of a puzzle to find out how to open files I downloaded from Smashwords or other sources. The process is actually rather simple, but here it is:
1. Downs Adobe Digital Editions.
2. (open and) Log into your Adobe account.
3. Authorise your computer.
4. Plug in your Kobo in the “connect” mode.
5. The ADE screen will now show your Kobo ereader as a line in the left-hand column.
6. Drag and drop ebooks from your ADE main menu onto the Kobo line in the menu.
7. Eject ereader and wait for it to update.
8. Presto! The books are now in your library on your Kobo.