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I am no expert by any means and i am not even running HC, i am using froyo 0.6.7, but i think i can answer a few of your questions:
900mb for app memory should get you a LONG LONG way! A lot of the apps can install on SD card and heck, even if they don't, that is still tons of apps. Grab a 16 or 32gb micro sd card, at LEAST class 4, and you should be all set for space.
As far as space on screen goes download an app called LCD Density, it is free. It allows you change your density (basically screen resolution) so thing are bigger. I use 210, it works well and all the apps are full screen for me. This does NOT stay during a reset, so you set it, it reboots the NC, then you stuff will be bigger, but if you reset (not sleep) again you have to do it again.
Lastly switch keyboards! I picked up Thumb Keyboard from the market and it is AMAZING. It is perfect for the nook and you can customize the height and width for your thumbs so it can perfect for you. It also has the auto correct and predict functions you want too.
Hope this helps!
Originally Posted by JayGoat