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I just (Monday) purchased an ad-supported Kindle Touch while on vacation in Puerto Rico. Fired it up in the hotel and linked it to my existing Canadian Amazon/Kindle account. Device functioned flawlessly both in P.R. and now that I'm back home. No problems whatsoever.
I will also add this: I don't find the ads disruptive or obtrusive at all and I'm a guy who uses ad blocking plugins on pretty much everything. I had plans to pay the extra money to remove the special offers once I got home (the store I bought the Kindle at was out of stock on the full price units) but, at least for now, I won't bother.
Let me also add my voice to those who are recommending spending the extra $20 to get the Touch rather than the K4. You won't be disappointed. It is a very nice device.
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