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Having had a Kindle 2 and now a brand new Nook, I can say customer service that I encountered personally from B&N was very pleasant. Amazon has great customer service too as well.
I also think the 1.2 firmware is great for me but since the update automatically updated in the store after I bought the Nook, I never got to compare the previous software to it. I have had no issues other people have experienced with their Nooks or any bad lag. It works just fine for me.
For me the biggest decision to seek out a new e-reader while I had the Kindle 2 was that I Just didn't seem to take to it. I didn't like it for whatever reason. It felt old fashioned as I held it and in it's design which wasn't a huge deal but mattered a bit. The contrast was poor, the grey background and font was difficult to read in dim light. I literally had to sit under my lamp in the living room to read at night. It became annoying. I heard about the Nook, saw videos and when I finally saw one in person several days ago, I saw the big difference in contrast. The Nook's background is off white/almost white, the fonts are very crisp, you can change the font style and I do NOT have to any longer sit under any lamp to read! It's a lot easier for me to read in dim light with my Nook. I can't stop reading ebooks while with my Kindle 2 I was unhappy with it and actually stopped reading.
My experience with my Nook is quite better than with my former Kindle 2. Both are good e-readers but I prefer my Nook over it any day. It gives for me a superior reading experience and is just plain FUN
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