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I am not an expert but the Kindle canNOT download and use books in the epub format which tends to be the one used by Public Libraries and therefore, books that tend to be free. So check your library and see what selections are available. There are ways around it so the Kindle can read those books but it does require breaking drm (copy protection) schemes.
Amazon does have a huge selection and sometimes offers books for free. In addition, there are free public domain books on which the copyright has expired. Check the library on this site for free books available in the kindle format.
I recently got the kindle 3 and it is a fine reader and I went for the $139 one - which I think was a terrific price. But that sony has a touch screen control which some folks like.
More opinions will certainly follow.
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