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I have it now, thanks so much to everyone for the explanations.

@gRomoZeka -- I'm a big fan of 80's style synthpop, you've just made my day with that first video, realising there's a whole new...

@Marcus; The book explains that "e" is pronounced as in "yet", which is why they transliterate the sound as "ye". It seems to work for every other word I've learnt so far - Нет = Nyet, etc?
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I'm reading "Teach Yourself: Read and write Russian Script" and finding it an excellent supplement to Rosetta Stone as it has started by teaching me the alphabet, pronunciation of the letters and the...