The best way I've found to convert DAISY files to Kindle format is a 2 step process:
1) You have to use a computer program that will convert DAISY files to EPUB format. Don Johnston makes a product cleverly named "DAISY to EPUB" for about $100.
2) Then you have to take the EPUB formatted file and convert it to MOBI format, which the KIndle supports. I have found a free tool called "Calibre" that will do just that.
You can then load the MOBI formatted book on the Kindle and read it that way. It's kind of a pain, but the only way I know how to do it.
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