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I will point out, that my scheme doesn't protect me from the usual problems -- if the Kindle is lost or broken, the backed-up books are no good to me. But, they do allow me to keep the number of books on my Kindle down to a small number and move books onto the reader in situations where I don't have access to a network.
If you're thinking about long term preservation of the books you have purchased, then you're probably going to need to move to a reader that uses ADE or figure out how to de-DRM your book files.
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