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It's true that Calibre can convert to and from just about anything. However, the Kindle uses .mobi, while the Kobo and most other readers use ePubs. You should be aware that quality varies greatly with torrent books, with many of them being almost unreadable. Also, the metadata (author, title, etc.) will probably be really bad, making them hard to organize on a reader. Calibre can help with all of that, but it requires a lot of work to make a poorly formatted book readable. I think that library books may well be a better target for her.
I would recommend the Sony T1 or the Kindle for her. The T1 will download library books via WiFi directly on to the reader. Once you have it set up on her network, it's really easy to do. I believe that the Kindle will do the same thing, but I'd confirm that with the Kindle crowd. I'd stay away from the Kobo, as there are lots of complaints about fewer features and buggy firmware. I'd avoid the Nook because B&N go out of their way to tie you into their store and treat sideloaded (loaded via a cable) as segregated and second class books.
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