I just updated to the 1.7 firmware and was also having issues. It finally recognized my SD card when I rebooted, but I did notice that the battery was draining overnight.
I recharged the Nook, but then noticed that the battery charge went down to around 25% overnight. I recharged again and the same thing happened. I took the battery out, put it back in and that seemed to help. But I think it's still draining faster than on the 1.5 firmware (never updated to 1.6). I always leave the Wi-Fi off and haven't changed any of the display/device settings, so the only difference would be the firmware.
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