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My Clippings.txt is filled by copy-pasting the highlighted stuff into a text file.
You can download different dictionaries. You start off with the New Oxford American Dictionary, The Oxford Dictionary of English, plus a few foreign-language ones I personally deleted. All these are free and available to all Kindle accounts. You can also buy any dictionaries made available in the Kindle Store.
No idea about the Aura.
By the way, using the Annotations plugin for calibre you can import all your notes/highlights/bookmarks from the My Clippings.txt into a custom column in calibre, and view them per-book. I believe they are ordered according to Location. I do know that it's ONLY available for Kindles and for Marvin and Goodreader apps for iOS. No Kobo support. (Yet.) Although using Fetch Annotations (experimental) can add them to the end of the comments field. The plugin does it much better.
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