I have them both now and they are both great e-readers, The Color Nook has some decided advantages over the Kindle, one is obvious, the other is the back lighting which I did not think I would really care for all that much but the brightness is adjustable and it is nice to be able to read in low light situations without having to go look for the lamp. I have some magazines on the Color Nook that I would never get on the Kindle. Reference books with pictures/maps and the such are also much nicer, access to the web just ok. What is outstanding is the nook connection to Pandora. all the music you want. The one BIG disadvantage, IMHO, is the battery time.....8 hours on the nook compared to 10 days on the Kindle. So when I go on a trip the Kindle goes with me, the Nook stays at home. Still, I think that they complement each other well.
Just a note about B&N CS: A few weeks after purchasing the Nook it began to have bootup problems...finally it started shutting down on its own. Then last week it just would not start at all. I gotta hand it to BN store customer service though. On Sunday, I took the Color Nook back to the store and after some testing and whatnot, they agreed that it was a defective unit. They de-registered me from that unit an I walked out with a brand new one which works much better than the first one ever did.
Phil