They finally answered this question over on the Barnes and Noble message board. This is from Phil_K an administrator.
Quote:
Re: Library ebooks on nook or not?
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posted an hour ago
Thanks for the question, love-ebooks: unfortunately, nook will not be able to support borrowing from the local library at this time. If this changes in the future, we'll be sure to let everyone know.
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As for what devices can download directly with no manipulation of the Adobe Adept DRM, my understanding is that it has to be a device which can be registered to Adobe Digital Editions. This is their webpage on supported eBook devices. My guess is the Sony Daily Edition when it is released will be added.
http://www.adobe.com/products/digitaleditions/devices/