eldereno, yes, Kindle 2 supports Audible format audio files.
To the original poster, it's really easy to manage your Audible library. You only need to download an Audible audiobook once. When you downloaded your first Audible book, you had to install the Audible software, so I assume you have the Audible Manager on your pc.
To manage your Audible books, open the Audible Manager program. All the Audible audiobooks you have downloaded will be listed here. Connect your Kindle via the USB cable - Audible Manager will automatically pick it up and show you which audiobooks are on the Kindle. If you want to add a book to the Kindle, right-click on the title and select "Add to Amazon Kindle". You can delete audiobooks from the Kindle, but they will still be on your pc and with Audible Manager, it's very quick and easy to transfer them back to the Kindle.
As luvmy4brats said, you can always download your audiobooks from the Audible library if something goes wrong and you lose the files.
I listen to a lot of audiobooks on my Kindle, but I only have one on my device at any one time. If you want to carry a bigger audiobook library with you, you might want to check
which other devices Audible supports.
