I followed a how to from android forums, setting up a 2GB uSD card to install CM7.1 using CWR:
I downloaded the rom from CM: update-cm-7.1.0-encore-signed.zip
(I cannot share the link since i just joined, but if you google: "nook color cm7 storage" and click the first link, that's the process I followed)
Installation went fine, I also added the google apps package, and can finally download apps from the general android market rather than the B&N market. I downloaded the nook app so I can load my books back on (mostly epub format). The problem is that when I run the Nook app, it says I have no SD card inserted. This is true, but I didn't need one to load books into my additional storage on the Stock Nook rom. I also have lost the USB storage mode ability I had on the stock rom.
If I go to Settings->Storage I have the following partitions:
1)Internal storage: 0.792/0.92GB
2)Additional Storage: 4.82/5.00GB
this is the /mnt/emmc drive
3)Additional Storage: unavailable
this is the /mnt/usbdisk
Again, all I'm looking to do is load books into my internal storage like I had with the original Nook Rom, and I'd like to be able to drag and drop them from my computer via USB. Any suggestions would be greatly appreciated.
If it's too complicated I may go back to the stock rom, I just wanted the option of using a better web browser and having access to more apps with full android.