Here is the way:
If you've already iTune installed and if not logged out make sure you log out first. Then try to create a new account. But when you do so, make sure you change the country to US. By default, iTune is installed with its iTune store showing only respective country's one by detecting the IP address.
When you change the country to U.S. iTune will bring you back to the iTune store of U.S. Now locate 'Kindle for iPhone' application and try to get application (this is very important, you have to choose a free application, otherwise you would be stuck with payment information.
Now it will pop-up with log-in page. Don't log in with your original ID and password, rather create a new account.
In the payment option, choose 'none', (none option will apprear only if you chhose a free application in step 2) and use a valid U.S. address, specially 'state', ''zip code' and 'telephone number'. Of course you've to use a different e-mail address.
Then activate the new account going to your email account.
Connect your ipodtouch/iphone to the computer and follow the instruction for syncing.
Once done, take your ipodtouch/iphone and go to app store to find 'kindle for iphone application in book category, and install it.
You can only send sample chapters of books to your ipod, can't buy books unless you have U.S. credit card on your amazon account.
