Non-DRM Mobi books, like free e-books found online in Mobi format, or files you convert to Mobi files, are already supported on Kindle.
Hacker Igor Skochinsky used DRM to load Mobipocket books onto his Kindle. Using a series of scripts, he's able to convert eBook files to Amazon's AZW format and then add the necessary serial number DRM, specialized per an individual's particular Kindle.
DRM refers to the fact that you can't view Amazon Kindle books on other devices (including your computer), or on other Kindles - i.e. no sharing, the purpose of DRM.
Non DRM Mobipocket format is already supported on the Kindle - just drag and drop.
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