We have analyzed Kepler light curves for 849 stars with Teff<=5200K from our Cycle 1 Guest Observer program. We identify six new eclipsing binaries, one of which has an orbital period of 29.91 days and two of which are probably W UMa variables. In addition, we identify a candidate "warm Jupiter" exoplanet. We further examine a subset of 670 sources for variability. Of these objects, 265 stars clearly show periodic variability that we assign to rotation of the low-mass star. At the photometric precision level provided by Kepler, 251 of our objects showed no evidence for variability. We were unable to determine periods for 154 variable objects. We find that 79% of stars with Teff<=5200K are variable. The rotation periods we derive for the periodic variables span the range 0.31days<=Prot<=126.5days. A considerable number of stars with rotation periods similar to the solar value show activity levels that are 100 times higher than the Sun.