Below are steps to allow Kindle to display Chinese characters (汉化). It should work for the most current versions of Kindle 2 and Kindle DX. The one I used myself is Kindle DX Graphite International Version 2.5.5.
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Recently I bought a new Kindle. It's pretty cool and easy to use. However, there's one question that puzzled me: Should I turn my Kindle off when not using it?