Thanks everyone. June and banjobama, I think I'm in between you in what I should do as she's easily hurt. I know her boyfriend well and he's more understanding of technology. I might have a word with him, see if he can get the message across for me as she might be less offended than if I say anything.
Why are some people so prejudiced against e-readers and believe that "real" books are the only thing to read!! She says things like: "I don't like the idea of reading from a computer" - I've tried to explain e-ink and shown her my 505; or: "oh, but there's nothing like a REAL book!". I've given up making a convert. I'll try to explain that the only books I prefer as p-books are reference books and in-copyright ones unavailable when I put a parrot on my shoulder