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The file is encrypted using a unique code called a PID. This is an ID that is linked to a specific device or computer. This would be why you're getting the error. If the DRM were removed, you could just drag and drop them. You would, however, lose the Whispersync ability. So if you want that in tact or don't want to strip the DRM then, yes, you would have to download them from your Amazon library again selecting your new Kindle 3 as the device.
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