Well, the 1.0.1 notes say the upgrade only addresses WiFi and browser issues, so I finally called B&N tech support to ask about the "my shelves vanishing" problem that happens to sd card stored content when the NC is powered on and off and their response was that only books stored on the NC's internal memory can be used with the collections/my shelves feature. When I asked if that didn't defeat the purpose of having 32gig expandability they answered "maybe it will be looked at if it becomes an issue for more customers in the future."
So disappointing.