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On the nook simple touch the non-B&N content is on a separate space on the device, but you can add a microSD card to give you more space than you'd ever need. Also, from what I gather, it actually gives you more space for non-B&N content.
As far as the software goes, the nook touch actually segregates content from different stores much less than the original nook. You see everything together instead of needing to go to books or documents depending on where the content came from.
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