Thanks for all the information! I went with Kindle Touch. Should I open box and make sure it powers on and works before I wrap it or do these things always work out of box? I would hate for her to open a Christmas present that doesn't work.
FYI, I bought it a local target for $99. Should I pay the extra $7 for the extra warranty that covers any accident or problem besides water damage or does amazon direct take care of this kind of stuff anyways? I guess it is kind of nice to be able to walk into target and replace it quickly.