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To the OP,
I have both the Nook Color and a 7" android tablet. If you want a tablet experience, IMHO it is better to get a tablet, and not the Nook. That said, there are some tabs out there for your price range. I have the Archos 70 Internet tablet, wi-fi only, runs Froyo OS. It plus a 16 Gb SD card cost me about $305 from Amazon. I have several book reader apps on it, and it is thinner and much lighter than the Nook.
My wife has the color Nook, it is rooted but the tablet operation seems a little less smooth than my Archos.
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