If you are using Kindlefix on your library books, it may be that you have more than 1 PID registered at your library account. Several people have run into this problem on the K2, and after removing all but the Kindle PID, stopped getting the The selected item could not be opened error on downloaded library books.
You may also need to recheck your PID. When inputting it to KindlePID - no spaces, all capital letters and the 0 are zeros not alphas.
Post back if you are still having issues.
cheers
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