From nookDevs

Part of the NookColor portal

The 1.0.1 sideload update from Dec 17, 2010 will not install on a NC while it is rooted. You have no choice but to restore the system partition to factory fresh in order to install the update.

If you don't want to painfully re-install all your apps, you can use an app like Titanium Backup to back up your user installed apps and their data.

Before you start the update process, REMOVE your uSD card from the nook and set it aside. Don't mess with it until after the update and restore process is completely done.

Contents 1 Get the update 2 Restore the /system directory to out of the box stock 3 Install the update 4 Re-Root

Get the update

Download the sideload_update.zip from the BN web site.

Restore the /system directory to out of the box stock

To wipe the system partition on the NC you need to force your reboot counter to hit 8.

You can power off the nook, and then interrupt the boot process by holding down the power button eight times, OR you can do the following:

adb shell 
echo -n -e "\x08\x00\x00\x00" > /rom/devconf/BootCnt
reboot

Note: IMPORTANT: Make sure the battery is charged enough to make it through the procedure, or do this with the device plugged in. If power is lost while it's flashing the ROM, the device could be permanently disabled.

Install the update

• Register the newly flashed NC
• Reboot
• Plug in the USB cord
• With the NC mounted as a USB drive, copy the sideload_update.zip to the root of the nooks internal storage drive. (Since you don't have an uSD card in the NC at this point, you can't accidentally copy it there. :-)

Option One:

• Turn off the NC (power off)
• Turn it on
• Press the power button for a moment to cause the NC to go to sleep.
• Wait. The system will install the new update. It will look JUST like the image above again.

Option Two:

• Turn off the NC (power off)
• Turn it on (and unlock it if required)
• Press the Menu button (up arrow in middle of bottom menubar) and select the Library option (leftmost item)
• Select the "My Files" tab, and press the Sideload_update.zip item (it will have a red question mark on it)
• Wait. The NC will reboot and install the new update. It will look JUST like the image above again.

IF THIS STILL DOES NOT WORK! After having copied sideload_update.zip to the root of the nook's internal storage drive

• Install Adobe Digital Editions on your PC and activate your account;
• Connect your NC to the computer while ADE is open;
• ADE detects the nook and asks to activate it. Do so;
• Disconnect your NC and wait about 1 minute. It will automagically reboot and patch itself.

Re-Root

Now, go back and re-root your nook.

If you used something like titanium backup to backup your apps, you can download it from market again, and then put your sd card in, and restore backups of USER programs.