I have downloaded the Kindle on my Itunes touch and I was not sure if you all knew that Amazon has quiet a few books that are free for the Kindle/Kindle Application.  A couple I found are Suite Scarlett by Maureen Johnson and Once Bitten by Kalayna Price.  I have not read a book yet using the KIndle App so I will let you know how I like it. 

I've read on it. The first time, it was like... wow, I'm reading it on my iPod Touch! After that, no problems reading on it. :)

Check back every so often as the free books they offer change from time to time. 

Same here, I downloades all my Kindle books to my Touch and I read on it all the time since it is always with me. Absolutely no problems at all and the screen is just big enough for me . And it synchs to last page read with my kindle, great feature and I love them both.

i installed the free Kindle for PC and keep downloading free books - but i haven't actually read any of them yet.  i got some really good stuff too, so i'll have to make time at some point.

I got a Kindle for Christmas and I absolutely LOVE it! I've read a few books on it so far all of which were free from Amazon. I think it's really going to help me control my insane need for paper books.

I wish I could find a place where I could rent one to try it out.  I am thinking it may solve my problem about the type on paperbacks being to small to read after I have read for 6 hours or so.  My eyes start to blur and cross after 6 hours.  I was told you can regulate the type size on a Kindle so it sounds attractive to me, but I don't want to fork out 200+ to buy one.  Besides, buying books for it is rather expensive.

Is it legal to trade Kindle books?  If so, it might be a good feature for this site.

No, you cannot transfer books to another person. You can to another device you own as long as it is registered with Amazon.

I got mine for Christmas as well, and I have loved it. I have read six books on it so far and I haven't had any problems. I have four bookshelves and even with some creative stacking they are all full with no room. I think that  it will help me with the space issue.