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Canadian IP is fine. You just need to have a US-based shipping/billing address entered. B&N doesn't seem to verify the billing address on the account with that of the card and the charges will go through fine, but if they ever start, you can switch to using gift cards or just phone up your CC company and have them add your kid's San Francisco address as an alternate.
You may want to start using gift cards anyway, to reduce the number of small charges on your card which some CC providers flag as a fraud warning sign, and also to take advantage of the exchange rate when our dollar is strong.
B&N keep the books you get from them accessible from the website as "My NOOKLibrary" or something similar, and you can re-download using your browser at any time without ever having to involve an actual nook, much less its wi-fi connection, though I've heard that nook wi-fi works in Canada (3G apparently does not).
Hope this helps, and welcome to MobileRead!
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