Let me start by saying that I was a die-hard Kindle fan. I loved my generation 1 and 2 ebooks they all performed flawlessly. So imagine how very excited I was when the generation 3 came out. Being the fan that I am I ordered one the first day.
It arrived, I loaded some books on it, and it worked as advertised until I took the library of 700 books stored without a single glitch on the Kindle 2 and dropped it on to the hard drive of the Kindle 3. That is when all the crashes and self-resets began. It got so bad it was resetting itself every 20 minutes and when it did I would lose where I was in the book. It would default to the beginning of the book and it would no longer have what percentage that I read so I would have to page forward to my place. It also ceased having the most recently open book first in the order of most recent first.
Got so frustrated that I called Kindle Support and they sent me a new<refurbished> Kindle so I dropped my library on it and had the exact same problems with it. Now I have a ticket in with the IT department to figure out why a book that is advertised to hold 3,000 books cannot handle 800.
I really miss my Kindle 2 it never had issues. My advice is too stick with Kindle 2 because the software for the Kindle 3 is a mess.