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No matter how you slice it, it isn't EASY to get library books on a Kindle.
For the OP, check your local library. Is the collection decent? Do they carry Mobipocket along with ePub/PDF ?
If they carry Mobi, there are scripts that will set the Mobi so your Kindle can read it.
If they only carry ePub and PDF, you'll need scripts to strip the DRM and you'll need Calibre to convert ePub--> Mobi.
If your library has a good selection and short wait lists like mine, it might be worth it to buy the second reader off eBay that can read ePub. The Sony PRS-300, Cybook Opus, Aluratek and Jetbook models all sell for around $100 - that's only 10-12 library books.
I've read 52 library books since May, and I'm in the middle of 3 more. I've toyed with the idea of the Kindle 3 (until the new Sony's were announced), but I'll keep an ePub reader around no matter what I do in the future.
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