The Kindle does not read PDFs directly, but you can email it to Amazon and they will convert it to a MOBI (AZW) for you. From Amazon's main Kindle page:
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Personal Files
Eliminating the need to print, Kindle makes it easy to take your personal documents with you. Each Kindle has a unique and customizable e-mail address. You can set your unique email address on your Manage Your Kindle page. This allows you and your contacts to e-mail Word documents and pictures wirelessly to your Kindle for only $.10. Kindle supports wireless delivery of unprotected Microsoft Word, HTML, TXT, JPEG, GIF, PNG, BMP, PRC and MOBI files.
PDF conversion is experimental. The experimental category represents the features we are working on to enhance the Kindle experience even further. You can email your PDFs wirelessly to your Kindle. Due to PDF’s fixed layout format, some complex PDF files might not format correctly on your Kindle.
If you are not in a wireless area or would like to avoid the $.10 fee for wireless delivery, you can send attachments to "name"@free.kindle.com to be converted and e-mailed to your computer at the e-mail address associated with your Amazon.com account login. You can then transfer the document to your Kindle using your USB connection. For example, if your Kindle email address is Jay@Kindle.com, send your attachments to Jay@free.kindle.com.
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If you have a Windows PC, Windows MobiPocket Reader will import the PDF and convert it to a MOBI/PRC (which will end up in your default MOBI directory, usually My Documents\My eBooks). Amazon's Kindle conversion is based on the same software used by MobiPocket Reader, but Amazon is thought to have updated their version in some respects.