32Gb cards should work, but they're about half the cost of the Nook Color right now for a good one. (And the one a friend got from Verizon for his Samsung rates at about Class 4ish.) Then again, seems that "Class 6" 16Gb cards aren't rating all that well from coments on NewEgg and the like.
Yes, the positioning sucks. But it's workable. Wish they'd just used a full-sized SD slot as those cards seem to be more reliable. Alas. Nook Color 2.0 maybe.