Yep, the problem was exactly what I thought...me.

I just didn't know what I was doing.
I was trying to move the book to the Nook in Windows Explorer. I had to click on the book to open it and THEN it opened in ADE. I clicked on the little bookcase and the book cover icons showed up. Then, all I had to do was drag the book cover to "nook" in ADE.
I am SOOOO glad it is working.