I believe this story was also posted on the B&N boards and Doug commented that this gentleman's nook was defective from time of purchase. Evidently, there were a few nooks that for reason unknown automatically did a factory reset which brought it back to 1.0 firmware. The nook then automatically updated to 1.4 as programmed.
The data loss occurred when the nook defectively did the reset ... not ... the upgrade.
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