Kindle confusion

Last week Brigham Young University library announced that it will no longer lend books on Kindles, until Amazon clarifies its policies on library use of the popular ebook reader. Today there's a report on Slashdot about DRM and the Kindle. They point to a blogpost from geardiary where it seems that Amazon limits the number of times you can download a book you buy. What's worse, nobody in Amazon's Customer Service seems to actually know what the "policy" is, or if it really exists.