News broke late last night that the a couple libraries in Seattle are currently testing the new Kindle eBook library support. As part of the test, someone at the King County Library System has already made an instructional video that shows how to download a library eBook to a Kindle.
The video shows you how to download the eBook directly to the Kindle Wifi. Note that you cannot download over 3G, so even though the original Kindle and the K2 can both read the library eBook, you will need to use a USB cable to transfer the eBook.
The process for downloading to the Kindle Wifi is pretty much the same as when you buy an eBook from Amazon. First you will need to check out the eBook, and when asked you will need to select the Kindle as your preferred device. This will take you to Amazon, and from here you can select which Kindle (or app) that you want to read the eBook on. Finally, open the Kindle or app and tell it to check for new items.
Note that the new library eBooks are only being tested at a couple libraries (and that when the service officially launches, they are also going to be limited to the US Kindle users). The rest of us will have to wait, and OverDrive has not said how long it will take. For more details on Kindle library eBooks, please visit The Digital Reader.