This might be really silly to ask, but you aren't unzipping the files first are you? I know it will only work if you put the actual zip file in and wait for your nook to go to sleep.
I also read somewhere that somebody had to put theirs in their sd card. I know that's not what you are supposed to do though, so I don't know why this is what this person experienced (I think I saw it in comments from a site about the 1.1 update).
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