1. there are quite a number of ebooks already in the reader when i brought it. it belongs to last user. although i can now read it in the reader, i am worrying if i update the software, i will lost them. Is it the case? btw, is there any ways for me to "own" the books?
others have answered this, so I won't go into it...
2. the owner installed the font hacks for me to read Chinese, should i remove the hacks before the update? or could just install the update and let the hacks be over-written, then i can install the hack again?
You need to remove the hack to get the update
3. if unfortunately, there is something wrong during updating, would the reader be locked or becoming unusable? just like the firmware update failure in other kinds of devices?
Amazon runs the update with no involvement from you (if you don't have hacks installed, and you have whispernet access). In all the cases of firmware upgrades since the first kindle launch, I have *never* heard of a kindle being bricked by Amazon's upgrade. If somehow you were to be amazingly unlucky, they would probably deal with it very nicely at kindle CS -- they are very good.
I would be much more worried about this when installing a hack. There, you aren't using official updates, and CS doesn't _have_ to help you if you brick it. That said, the only people I've ever heard of bricking a Kindle with a hack are the hack authors...
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