Yeah, buying the Kindle in Amazon's eyes is like buying a bookshelf. When you buy a bookshelf in a furniture store, it's usually understood that you don't get the nice pretty books that are on it as well, and you are expected to put your own books on it. It's also kind of like buying a used car. When I buy a used car I don't expect to get any of the CD's that might be in it when the owner lets me take a test drive. Heck, I don't even expect the gas to be in it after I buy it.
As long as the internet switch on the back is off, even if the Kindle is re-registered to another user I don't see how the books could be taken off. So I think the issue is not in the registration, but in the EVDO.
BUT...good on the seller for giving you the $40 to Amazon. That was a fair thing to do and I think you both came out on the good end. If the seller ever decides to get another Kindle, he'll still have his books to put in it.
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