On my desktop at work I switched to the pretest version of Texlive 2010. This was probably a bad idea, and I may have to switch back if things don’t work out. But for the moment it looks like everything works fine. As an added bonus pdflatex generates pdf 1.5 with more compression which means that the pdf files are a bit smaller now than they were before. In fact, now book.pdf is a smaller download than book.dvi! (This is also true for the algebra chapter but not for the smaller chapters.)

Anyway, let me know if your pdf viewer doesn’t handle the new versions, or if you find something else wrong with the new setup.