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I just tried this Personal Documents thing on my new kindle (firmware 4.01). Basically you email a file to yourself with the @kindle.com address. Then on your Kindle turn on wifi so it downloads. After that happens the thing you emailed shows up in your "manage your kindle" page. So if I delete it from the Kindle, it goes into the Archive where I can re-download anytime.
Basically personal documents work just like purchased Amazon books now. So if you download some free ebooks from Gutenberg for example, you can email them to your Kindle and have them show up on your cloud drive, to be available for Archiving and redownloading anytime.
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