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I contacted B&N this morning about this issue and this is their response:
"Thank you for your email regarding the NOOKcolor not recognize the cover
of sideloaded content.
We are aware of this problem and are working diligently to resolve it.
Please check back often as we hope to correct this situation shortly
with the update for NOOKcolor.
Please accept our sincere apologies for any inconvenience this may have
caused."
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