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Library books and Kobo/Sony/other ADE-DRM purchases are natively compatible on the Nook. You won't have to do any stripping or conversion to get them on, because B&N licensed the ADE scheme for the NOOK device.
It's just that they use their own B&N-DRM for their own books, and most other reader device/apps haven't licensed that (although it's supposed to be included in a future version of ADE), so it's trickier to get B&N's files to work elsewhere than vice versa. I think only the JetBookLite of all the other readers supports it so far.
For what it's worth, they do have the most flexible and lenient and easy to remove DRM out there.
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