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I thought the Kindle could read mobi library books. I just didn't think there were as many libraries that offered the books in this format. I read library books all the time on my nook. There are a number of libraries that will sell out of state residents memberships, so even if your local library doesn't offer ebooks, there are still options available.
Both devices offer dictionaries and the ability to take notes, although I believe the Kindle is a little more user friendly in this category.
I researched both for a couple months before settling on the nook. The library was the biggest selling point for me.
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