Ok what you need to do is download the 1.3 update from Barnes and Noble. Which you can find here:
http://www.barnesandnoble.com/u/nook...ate/379002520/
Follow the instructions they provide and you will be running the 1.3 software. After that you need to re-root the nook. I highly recommend the manual nooter method. It takes about 10 minutes to do. Basically you create a bootable SD card with clockwork mod on it, and install the manual nooter from there. Then reboot and your good. A good set of instructions can be found here:
http://forum.xda-developers.com/show....php?t=1054027
Good luck and happy hacking.
It took me a a few runs through the procedure to get it right. Don't worry though, the Nook Color is one of those devices which is nigh un-brickable. If you mess it up just follow the restore to stock instructions as found here:
http://forum.xda-developers.com/showthread.php?t=914690
Heck I would highly recommend becoming a member there, and asking away. What I posted will lead you down the road to being rooted and if you paid attention in class, you will be fully updated to 1.3, have flash support, have access to the android market and in general, be good to go. Ask me later how to overclock your Nook Color once your up and running.
Good luck!