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The nook Color can, indeed (with the 1.2 update, at least), download from the web. They show up in myfiles-->My Files-->My Downloads, and mostly work like any other sideloaded content (though you can't make it appear on the home page, and I'm not sure how reliably it will remember the last page you were on). I have confirmed this from Project Gutenberg.
But I wasn't referring to that, I was referring to copying stuff over with Windows Explorer with the nook as a removable drive - no additional software needed.
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