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I read something about the kids books getting some updates in 1.2 that allow more interactivity/features. But since the B&N kids books are so overpriced I haven't seen the changes in person yet.
I also don't know if any changes have been made to the in store stuff (though I doubt it) since as I mentioned I haven't made the change 1.2 yet and while my wife uses the in-store stuff a lot on her e-ink nook I have yet to take either of my nooks into a store.
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