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You can use it while it's charging...I doubt it'll have any ill effects.
I'd reccomend "calibrating" the battery. Fully charge and drain it about 3 times, so that you can get the max usage out of the batter.
First Step: Update Firmware.
Second (At least for me): Request and Download Shell hack.
Third: Install Enhanced iPDF and FBReader. Full screen is really necessary for PDF's not formatted for the iLiad. FBReader gives you access to just about any other format you'd want.
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