Thanks for that! Kindles aren't a great idea because, like you said, they don't support a proxy! Imagine getting a 3g Kindle and giving 12-18 year olds unrestricted access to the internet!
We we're thinking of a Sony reader or something like that, but we would have to buy the books from Waterstones etc (if the books aren't available for free) but they said something about:
"However, due to DRM issues you would only be able to use this on a few different eReaders and from one computer. This would also means that you are notable to transfer them between readers or computers. "
What does this mean (I think its clear I don't know much about ebooks, and I prefer paper!!)