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Yes you can share the library and you can read the same book, however, you probably want to turn off the synchronise between devices if you are planning on doing that. Just mark your place with a bookmark instead.
The only problem with this would be if DH was reading the same book as you on both his Kindle and Kindle4PC/Mac/IPod etc as then the sync would be switched off.
You can leave the sync switched on if you don't plan to read the same book at the same time but just want to use books on the same account.
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