When generating the code for your button select the "Blogger / Blogspot" option twice, if you do not use the dinamic view on your blog.
If you use dinamic view, and you successfully install the Send to Kindle button on your blog, please do leave me a comment about how you did it! Thank you in advance!
2.1. Go to your Blogger home: https://www.blogger.com/home
2.2. Go to the Template menu of your blog.
2.3. Select Edit HTML button under the Live on Blog thumbnail.
3.1. Insert the "Step 1" code before the closing body tag.
3.2. Change the "&" to "
&" in the code so the xml can understand it.
3.3. Click Save Template to see that you do not get any errors. If you get errors, google on the error message to solve your problems.
4.1. Insert the "Step 2" code in the "b:includable id='shareButtons' var='post'" section before the closing b:includable tag to have it together with the other shareButtons. (shareButtons have to be enabled from the Layout menu: edit Blog Entry and tick "Show Share Buttons".)
4.2. Click Save Template to see that you do not get any errors. If you get errors, google on the error message to solve your problems.
5. Check your blog, it now has a Send to Kindle button where ever you put it.