Please connect your LeapReader to the computer with a USB cord; a system update prompt should pop up once the LeapFrog Connect application opens. Select "update now" to update the LeapReader with new software.
If you do not see an "update now" prompt, click the "Settings" link on the top right of the page in LeapFrog Connect. When the "Settings" box opens, click the "LeapReader" tab, then click "Repair". When the repair is complete, disconnect the LeapReader and try using it again.