Originally Posted by wallcraft
It is password based, with the password for B&N ebooks being your credit card number. That is all that Adobe and B&N are saying about the scheme.
B&N cannot be selling ePub now with the password based DRM and ADE won't handle it and thus your purchases won't be valid. I expect an update to ADE to handle this when CS5 is ready to start dishing out this passworded DRM for ePub.