FINALLY worked it out.
Registering with B&N was the main problem. Registering while connected to the wireless you are using to root the nook will block the root update from downloading and installing.
Ok so here are my steps in rooting a 1.5 Nook using the non-router way....
1. Did a full factory reset
(press power button for 12 sec, 6 times).
2.
(this step is not needed) Registered with B&N using normal wireless.
3. Turn off the nook.
4. Install Connectify and config your wireless usb
5. Install TreeWalk and edit the file 'C:\Windows\SysWOW64\dns\etc\named.cache' (or 'C:\Windows\System32\dns\etc\named.cache' for 32bit system) with the added lines...
Code:
; local
edmfiletransfer.barnesandnoble.com. 2953666 A 217.20.163.111
; local
sync.barnesandnoble.com. 3068099 A 217.20.163.111
6. Turn on the nook, and connect to the Connectifty wireless connection.
7. If the update dose not start, maybe go to library and
'Check for new content' which will start the update. When you are connected rightly the book
'Don't Blink' appears in the B&N Library.
8. It will
(should) says that the update started to download then failed.
9. Turn off the nook then disable the Connectify wireless and remove TreeWalk. Turn on your normal wireless.
10. Turn on your nook. It
(should) bring up a
'nook Home' and
'nook Root' option.
11. Select
'nook Root' then
'Start rooting'.
12. You are now currently
'Rooted' so far.
13. If you have installed Android SDK (with the ADK platform 1.5 API, plus the Platform-tools) go to the 'C:\Program Files (x86)\Android\android-sdk-windows\platform-tools' dir, or where the 'platform-tools' directory is installed. Pressing 'Shift' and right-clicking in the 'platform-tools' dir will show the
'Open Command Window Here'.
13. With your normal wifi still connected to the nook. Type
'adb connect <nook ip address>' to connect to your nook.
14. To make your nook 'rooted' all the time type
'adb pull /init.rc init.rc' to copy the init.rc file to your computer.
15. This next step is NEVER said on nookdev, which pisses me off. Edit the lines in
'init.rc'....
Code:
# adbd is controlled by the persist.service.adb.enable system property service adbd /sbin/adbd
disabled
to....
Code:
# adbd is controlled by the persist.service.adb.enable system property service adbd /sbin/adbd
enabled
16. Then type
'adb push init.rc /init.rc' to copy the file back to your nook, then turn off your nook.
16. You are now fully
'rooted'. You can now install what ever .apk's you want.