I tried this with another book from this forum in PRC format: http://www.mobileread.com/forums/showthread.php?t=18352
This book is on the Kindle store, but again its $2.39 vs Free... yes very little cost, but it adds up.
This time, I had airport mode on before going into the amazon app the first time... so it could not phone home at all. No way, no how. Still locks up after a few pages. Amazon just seems like a very "All your base are belong to us" kind of company to me with the Kindle. Anything this locked down is scary to me. They don't want you reading any book not acquired from them really.
Yes the Kindle store is easy, but
A.) They don't have all the books I currently have already in ebook format.
B.) I'm not paying for public domain books that I can get free elsewhere... just seems pointless to me.
Looks like I'm looking to another way to read books on both an ebook reader and my iphone.