Previously, 1.1.1 rooted nook.
Now, download the rooted update in http://www.nookdevs.com and root it as suggested, you will have a 1.2 rooted nook + latest (nooklauncher + nookbrowser + nooklibrary + trook + nookwifilocker). Everything work smoothly.
Once you have 1.2 rooted nook, remember:
1. the favorite links in nookBrowser will be empty, so you have to re-add it.
2. previously installed androidvncserver and busybox will be deleted and you have to re-install them if you need them.
3. disable B&N update: adb shell mv /system/etc/security/otacerts.zip /system/etc/security/otacerts.zip.bak
4. Use it as much as possible
Update: Please use the LATEST rooted 1.2 update file (there are some install/re-install issue in the previous rooted 1.2 update file) and MANUALLY REBOOT nook after the update. Quote from nookdevs "If you are already on the rooted/streamlined 1.2 update, please note that the streamlined rooted 1.2 update file has been updated on Feb 8th at 12:00PM PST, it is recommended you run update again with the new file. You should not lose any settings during this process."