Hi Lew, welcome. You have it right, running a bootable SD card means the internal memory is just sitting there untouched so you won't need to worry about its partition structure until (if) you decide to mod the internal memory.
Check this out for formatting video http://www.androidtablets.net/forum...using-handbrake-convert-video-nook-color.html
JP
JP - Thanks for the confirmation on the internal/sdcard memory. I'm digging through the handbrake tips now. I only have a few weeks before we leave on this month long trip and I want to get loaded up with as much of my material as possible for the nook as we're not planning to take laptops etc. This forum is great but it's kind of like trying to drink water from a firehose sometimes, there's just so much info and jargon flooding out of the threads.
Cheers,
Lew