Nook Touch Rooting Directions - Super Easy Method

1. Shut down your Nook Touch completely. Hold down power button to prompt power off.
2. Download TouchNooter from here: touchnooter-1-6-24.zip.
3. Unzip TouchNooter with a program such as WinRAR.
4. Write TouchNooter to a microSD card; you'll need an external microSD card reader if your computer doesn't have one built in. For Windows, use WinImage or Win32DiskImager to write the image to a card. For WinImage, you may have to open as Administrator, then go to Disk, then "Restore Virtual Hard Disk on Physical Drive". Hit okay and then choose the TouchNooter image (I had to select show all files to get it to appear since it uses .vhd by default).
5. Insert microSD card into Nook Touch and power on. You should see a rooted forever logo as it boots up. Once the Nook Touch is booted up, unlock the screen and touch the Android guy to begin, then hit skip twice to skip sign in. Enable location services when given the option (it should already be checked by default).
6. Hit Launcher Ex then make sure WiFi is connected (mine was already working from being setup prior to root).
7. Launch the YouTube app (tap the icon on the bottom center of the screen that looks like four squares to launch the app drawer, then scroll to the right to find YouTube). With YouTube open, hit menu (small button on the top center of the screen) then select "My Channel". Sign in with a Gmail account. If you used a Gmail account for your B&N account, you should use that one. Hit allow a couple of times then once you're finished exit YouTube.
8. Launch Gmail. Tap menu, then refresh. After it syncs, exit.
9. Launch the app drawer again, then open the app called Nook Color Tools. Un-check, then re-check allow non-market apps. Exit.
10. At this point you are good to go, but I shut down the Nook Touch once more, then remove the microSD card and erase it with my computer using a free program called SDFormatter, which restores the card back to its original size. After that, put the card back in the Nook and turn it on. The Nook will ask to format the card. Do so. Now everything is done and you are ready to install some apps.

Update: Check out this second Rooted Nook Touch Tutorial to learn how to fix the broken search feature for the Android Market, how to install and uninstall apps, change the appearance and placement of Button Savior, and other helpful tips and tricks for getting started with the rooted Nook Touch. And here's another post worth mentioning, Nook Touch Working Apps List.