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Libraries get to customize exactly how they want their screens to look but my main library (mymediamall.net) has a category over on the menu on the left that says "Ipod Comapatible Audiobooks"
If I click on that I get every audiobook that can be directly transferred to iPods/iPhones ... either WMA or mp3.
Pretty much you download the book first to the Overdrive Console software and then transfer it from there to the iPhone.
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