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The Nook can read ebooks from other sellers, I believe it can read Sony and Kobo books. It cannot read books from Amazon.
The Nook is similar to the Kindle.
They both have 3G/WiFI or a WiFi only model
They both have a 6 inch screen
They both have built in dictionaries
They both can read PDF's but poorly
They both have an MP3 player
How they differ
The Nook has a LED touch screen display at the bottom of the reader. It is used for all navigation through menus and can be used to turn pages. It also sucks up battery life
Kindle has a keyboard and directional pad that are used for navigation. This makes it easier to use the note feature and the dictionary feature on the Kindle then on the Nook. It also makes wireless shopping easier on the Kindle then on the Nook.
Kindle has the Pearl Screen with better clarity then the Nook screen.
Kindle is lighter and smaller then the Nook.
Nook has a replaceable battery and memory card slot. Some people love this, some people don't care. I had the replaceable battery and memory card slot on my K1 and never used either. I don't think it is important. But that is me.
Amazon has the largest e-book store and some of the best customer service around.
Nook allows you to borrow books from the library. Kindle really cannot, there are some rare exceptions to this or you have to be willing to strip the DRM off of a library book.
When it comes down to it, they are similar devices. There are pros and cons to each. Go to your local Best Buy and try out both of them. Check the e-book stores and see which one has more of the books that you want at a price that makes sense to you.
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