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To transfer OverDrive audiobooks to an Apple device, you need to turn on the 'Manually manage music…' option in iTunes. The instructions are slightly different if you have an iPod shuffle, so if you have one of those, please see: How to enable disk use on your iPod shuffle.
A Computer (Windows or Mac)
An iPhone, iPad, or iPod
The USB cable that came with your iPhone, iPad, or iPod
iTunes v9.1 (or newer)
Connect your Apple device using the USB cable.
Select your device from the upper right-hand corner of the iTunes window.
Check the Manually manage music and videos box in the 'Summary' screen.
Click Done in the upper right-hand corner.
Now you are ready to transfer audiobooks to your Apple device using OverDrive Media Console.
Note: If you disable the 'Manually manage music…' setting and then sync your Apple device with iTunes, you may lose the items you have manually transferred.