Just got this PR message and tried it out:

http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle

First I had to find my library card, then I had to retrieve my password, then the library checkout process takes you to Overdrive, and then you are automatically taken to the Amazon Up-Sell site to download the book you are lending from your library.  Oh, and would you like to buy a book we have pre-selected for you at the same time?

Other than that it works great if you pick a book which hasn’t been checked out already (most were.) And reading a modern title I found I didn’t enjoy it any more and probably less than the older titles from PG.  I have a Sony EPUB reader so I could already read library checkout books on that, but I like reading on the Kindle better, and the wireless download to Kindle is much more user-friendly than the Sony EPUB reader library- book-by-USB-cord process.