I recommend a class 4 SanDisk uSD card.
My Transcend class 6 did not work well.
While I'm sure there are plenty of threads around, the page below is the one I followed and it worked like a breeze. I considered installing to the internal but the supposed minimal bumps in performance don't outweigh the loss of the stock Nook system and loss of the B&N reader app included with it. I'm running CM7 7.0.2 off SD and 1.2 on the stock eMMC. I have a boot loader option set so it normally goes into the SD card unless I hold down the 'n' button which then tells the system to load the internal instead.
Nook Color CM7 Install Tutorial and Review - Android 2.3 GingerBread on Nook Color
I tried this process and failed. I don't understand step #4 where it says "drop the file in the main root folder of your new CM7 card"?
My NC failed to boot after step 4. I don't see a prtition or main root on my card when I open it up, I just see the list of files.
I like this process because I REALLY like my NC but I also want an Adroid tablet so I don't really want to root the stock OS.
I'm confused????
so i used win32diskimager .3 to image the generic-sdcard-v1.1.img and ended up with an 8gb card with a 117mb fat32 partition and the rest is unallocated. i have EASEUS partition manager installed to get the unallocated space allocated so that i can put CM7 on the card too, but i am getting errors that dont get me through the CM7 install when i see the penguin on the nook. am i doing something wrong?