A nice discussion about the Kindle and loaning in libraries over at Tinfoil+Raccoon. There’s some debate and confusion on what the TOC means:

When I asked for a definite answer, he verified that libraries who loaned the Kindle were violating the ToS.

and

We have reviewed through our Terms and Conditions regarding this matter and the Amazon Kindle. You will be able to purchase Kindles for your library to use for checking out to patrons, as long as you are not reselling the digital content.

One of the other problems that came up is the Amazon 1-click buying on the kindle (without password verification). Some decided to unregister the device from the account preventing purchases from being made though it was unclear if you can reregister later on. Another solution was just to have a policy for patrons:

If I understand correctly, the Sparta Library (the one mentioned in LJ) allows patrons to add 1 new title to the Kindle during the circ period at the library's expense. Beyond that, they charge the patrons the reimbursement cost of the additional materials.

Sounds like a solution. I’m wondering how the libraries advertise what content is currently available on it.