The B&N reader app doesn't allow for side-loading of DRM-free books not purchased at B&N.com, as far as I can tell. As Harry said, you can load DRM-free books via iTunes & read them in the iBooks app. You can do this via the Stanza app as well. I really like the interface of iBooks, but I really really really like the customization & options available via Stanza, which has become my reader app of choice on my iPad. The app itself is not as visually pleasing as iBooks, but it has too many "extras" to ignore and it's a free download in the App Store.
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