Rooting Your B&N Nook Software Version 1.1.0

Based on a Windows Desktop/Laptop PC.

Before starting:

• Make sure your Nook is fully charged.
• Make sure you have already gone through the initial Barnes and Noble Nook registration on the Nook. If you do not have a Barnes and Noble account already, use your Gmail account.
• You need to have a MicroSD card that is AT LEAST 4gb in size, preferred Class 4 with an SD Card converter card and a SD Card Reader for your Windows PC.

1. Download and Install WinImage. No need for registration, the trial version will work well for 30 days and you'll only use it twice. (Official Link | My Link)

2. Download AutoNooter. (As of this writing, the latest version is
  auto-nooter-2-12-25.img.zip) (Official Link | My Link)

Auto-Nooter is a script designed to automate a number of steps for the Nook Color rooting process that makes everything faster and easier. The script will also install several utilities like Softkeys 2.0.2 and Android market. Below is the detailed list:

• Installs su and Superuser.apk
• Installs Busybox
• Installs Softkeys 2.0.2
• Installs NookColor Tools (To Enable Non-Market Installs)
• Installs Calendar and Calculator.
• Installs Android Market, Gmail, Youtube
• Enable Multi-touch for Android Apps
• Enables Live Wallpapers
• Enables Android Market and Gmail.
• App Auto Install (Open up NooterFiles from sdcard drop in /data/app)

3. Extract the content somewhere on your hard drive. It should one .img file.

4. Insert your microSD card within the SD Converter into the PC.

5. Open WinImage.

6. Go to WinImage menu “Disk” and select Use Disk X: where X: is your micro SD drive. Replace X: with whatever drive letter Windows assigned for your SD card.

7. Go to the WinImage "Disk" menu and select Restore Virtual Hard Disk Image on physical drive…It will prompt you to select a physical drive from the list. Select your microSD one.

8. Click OK, it will open a dialog prompting you to select the actual image. Change selection to "All Files (*.*)". Select the .img file you just extracted and follow the instructions to write the image on the micro SD card. Click "Yes" at the message.

9. You now have a micro SD card that will enable Nook Color to boot up in a special mode that will open it to side loading content.

10. Power Off the device, insert the micro SD card in it and plug the Nook Color via USB to your PC. The Nook Color should reboot automatically. If the image was successfully written on the microSD card, Nook Color should boot to a  blank black screen.

11. After a few moments, your Nook will boot normally.

12. Remove the MicroSD card from the Nook and place it back into the computer.

Stolen From Me and:
http://reviewhorizon.com/2010/12/how-to-root-nook-color-1-0-1-using-auto-nooter/