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Not wanting to get into the "legalities" of converting for my wife's Kindle2, ... blah blah blah"
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I personally would not think twice about doing this. I would not give away ebooks I have purchased, but I will have no problems sharing my entire ebook library with my wife via calibre once my second ereader arrives. Do many people here actually buy two copies of an ebook, when they are to be read in the same household?