take a look at this link it worked for me!
Flash back to clean stock ROM - nookDevs
Method 1: Hardware Key Combination
is different than the posts I've seen here!
Thank you so much!!! oh my god! i thought I bricked my Nook 5 minutes after getting it. accidently flashed the nooks internal memory with auto-nooter3.0 instead of the sd card like i should have by accidentally selecting the wrong drive letter.
this caused an endless error and reboot sequence. rebooting 8 times didnt do it, because i that procedure leads to the recovery file within the nooks memory, but i had overwrote this with autonooter. the only thing it did was use autonooter as the recovery file and then rooted the nook. but it still had the error on start leading to endless restarting. couldnt access the internal memory from the usb to fix it and put back the nook update.
apparently i didnt erase everything because this step saved my sweating freaked out butt!
Method 1: Hardware Key Combination
1. With the NOOKcolor powered off hold down the n button (home) and Power Button until the NOOKcolor powers on.
2. You will be prompted with a Factory Reset dialog.
Press POWER key to Exit
Press HOME key to continue
3. Press n button (home).
4. You will be prompted to confirm.
Press POWER key to Exit
Press HOME key to continue
5. Press n button (home).
6. A Clearing Data dialog will show. NOOKcolor will reboot automatically once complete.
everything is back to the original state of the nook. now i get to start over again. this time being MUCH more careful!
thank you again. and hope this post can help someone else out who may feel as stupid as i have for the past 3 hours. :-(