[Thomas Ryan]

To understand Last Page Read (Last Location) try this experiment from a Kindle 1 .
Open a book that you purchased from Amazon.
Next-Page along for a while, or Goto some location and Next-Page along for a while (~20 pages?) (I am not sure if there is a threshold). You are simulating a reading experience.
It's Ok to actually read the pages :-)

Next go to Content Manger and delete the book.
(or delete from Home of you are on 1.2)

Verify it's gone from Home.

Go back to Content Manger, View Archived Items, Download the deleted book.
From Home - open it. You will be at the Last Page Read! Your bookmarks will be there too.

It all works because the annotation and reading information is stored on a server. (You can verify the likelihood of this server-based scheme by restoring to factory settings instead of deleting the book locally; or if you have two Kindles, download to one that never had the book, etc.).

This is like the Kindle 1, now I upgrade to Kindle 2, scenario since content will have to be downloaded to the Kindle 2, and annotations (including Last Page Read) will come with the content. But this is only a one-time "synch".

Version 1.2 and 2.0 menu items imply a mulit-time (pseudo real time?) sync between two (or more) Kindles "automatically" - or perhaps between a yet to be announced desktop reader or even some other reader and a Kindle.

Consider this scenario: I was reading on my laptop at work (ahem), then as I went home on the train, I picked up my Kindle 1.2 (2.0) and presto, right where I left off. Just a suggestion. Amazon owns Mobipocket and it could break down the DRM wall if they desired; that's another topic, for another day.