There are always a bunch of people lurking in there, but no clue how many may be active at any given time. I'm in GMT-7 and haven't had any problems finding someone alive and responding in the evenings....but there are people from all over in there so it's usually not a matter of if you can find someone but rather who
There should be no need for an SD card. I did mine with no SD card and it came with factory 1.5 (but it's only a 1003* SN)
It sounds like you're doing it right since the "Don't blink" is showing up - that means your nook did sync with the fake server and download the update. But I don't know of a way to tell if the rooting .apk also got downloaded successfully...and I'm still not clear at all on how that .apk gets executed when going to the home menu so that's about the limit of the help I can give