Got some big stuff going on with the future of Nook and USB hosting/slave.
I've moved away from the typical Arduino and put in for a IOIO android board. It's rather interesting because it can work with much earlier versions of Android and doesn't require host support like the previous post does.
Here's a sparkfun link to the IOIO board that I want and probably will be getting soon.
Now the project is a little top secret to those of you who are not so close in my design group. Basically though I'm going to try to root a Nook Simple Touch to run the IOIO. This should give me basic I/O, PWM, Analog in, and other fun stuff with full support of an E-Ink touch screen.
The Nook simple touch of course can be found at Barnes and Noble.