I am intrigued how you managed to get a US account with Amazon.com and a US$ gift card.
I just spoke to Amazon.com customer service. They are absolutely firm that you must have a US$ credit card issued by a US bank AND a US address in order to buy and download books for the Kindle. They also said that they will not accept a gift card purchased on Amazon.ca for a US purchase. In any event, even if you want to use a gift card, they say you still must have a US$ credit card with a US address. They claim that they can't sell the Kindle or the books outside of the US because of copyright and other publishing issues. Of course, they cannot explain how e-Reader and Sony e-reader can be sold all over the world and people can buy e- books even though they don't have a US address!
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