Copying the documents folder to the computer will work for any non-DRMed books he has. For books he has bought from Amazon, he doesn't have to do anything to back them up. If he wants to read them on another kindle (for instance if he is buying a Kindle 2) or iPhone or Kindle for PC, etc. He just connects to his Amazon account from that new device and downloads the books. When a book is downloaded from Amazon it is keyed to only work on that device, so if he copied Amazon books from a K1 to a new K2 for instance, it wouldn't work.
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