No go with G1
Doesn't work (as expected) with my G1 (ad-hoc only). Tried forcing the Nook to reconize ad-hocs with a few hacks I found online. On the Nook, I tried a modified wpa_supplicant deamon and editing both /system/etc/wifi/tiwlan.ini and /data/misc/wifi/wpa_supplicant.conf files as suggested. None of these combinations worked.
fyi if you need to mess with the /system directory:
in the adb shell
# mount -o rw,remount -t ext2 /dev/block/mmcblk0p5 /system
enables editing the partition and
# mount -o ro,remount -t ext2 /dev/block/mmcblk0p5 /system
sets it back to read only.