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People from other countries without a Kindle store use the US store but face geographic restrictions. Is there a way she can register a US based account using your address? Does she have a US based credit card? It sounds like no, otherwise this wouldn't be an issue.
If not, and you really, really trust her, you could set up an account for her and have her pay for gift certificates that you add to the account. The first time she buys something without a gift certificate, pull your credit card.
If you set up an account for her, I would let her register the Kindle to it but not give her the password. That way she can buy books (she emails you the gift certificate codes) but not use the account for other purchases.
Then again, the only people who I have on my Kindle account are my Mother and MIL.
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