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Originally Posted by Blog Kindle
Audible works just fine with Kindle.
Podcasts are a different story. In theory Kindle supports playing arbitrary MP3 files. However the only controls available are: play/pause and next track. You can't seek to the middle of a track or go back to a previous track. So I would say that it's not usable for podcasts.
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If you put arbitrary MP3s (such as podcasts dragged from iTunes) in the audible directory, it works. Each MP3 shows up in the regular book list, and can be tucked into a collection. The player is a little weak, but you can pause, skip 30s back and forward, and rewind wholly. You cannot play MP3s from here and read a book at the same time.
The music folder in Kindle is for background music, and gives you little choice about playback. It's adequate if you just want to block out the world with generic classical, elevator, or jazz while reading.