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I had the Nook 1st gen and it was on "ok" device. I sold it and bought a Kindle 3 because the type of books I read and like were absent from B&N online bookstore. So even when I had an reader which uses the ePub standard, it was useless to me. Another thing I like from the Kindle 3 is that is lighter, so if you read a lot, it can be more comfortable to hold. Nook 1st gen has an older eink technology so at this point, I would look forward and get a pearl screen: Sony or Kindle.
You can also compare both libraries and do a search with the titles you had or would like to get. Even when you can buy non DRM ebooks in other stores different than B&N or Amazon, it is always a good idea getting a reader which primary online bookstore has lot of your preferred books; faster to download into your reader.
If you think lending from public libraries is a must for you or you enjoy the "in store B&N" feature, I would say get the Nook instead.
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