I just checked that amazon's kindle now supports lending e-books from public
libraries. This is still in beta so it might not be available for all
public library systems.
But I did see it for King County Library system at Link: http://ebooks.kcls.org/FC90EBB2-0D99-425B-A47B-A52DB629D0D8/10/
and found a bunch of books available for kindle. I was also able to check
them out and read directly on my kindle (it was sent wirelessly on my Kindle
with special offers - wifi version)
You can check out the details at
Link: http://www.amazon.com/gp/help/customer/display.html/?nodeId=200
Yay, nothing beats free legal books with full kindle support (incuding book
marks and expiration reminders)
If your library system supports kindle formats now, please add it to the
wiki list.