The first nookColor rooting mechanisms were really best for experienced computer pros willing to follow very detailed instructions.  There is a new mechanism called an "auto-nooter" that executes all these steps for you and is probably the first root tool that's easy enough for an average user to follow.  I've summarized the steps that are outlined in detail on the Nookdevs site. If you are basic computer skills and a serious desire for the Kindle app or Angry Birds on your nook you are in luck!

Disclaimer: This could void your warranty or destroy your device.  Reality is it's pretty safe and easy to undo but you've been warned.

1) Make sure you've updated to 1.0.1
If you aren't familiar with how to update your nookColor to 1.0.1 just go the the B&N downloads for NookColor and copy the zip file to your nook directory (don't unzip it). Eject your nook and wait about 10 minutes and it should start the update and reboot.

2) Download the Auto Nooter tool and use a special tool to write it to an SD card.
The instructions on the nookDev page are pretty detailed just read them carefully.  The tool you are using "dd" can do something bad to your computer hard drive if you specify the wrong drive! Just read carefully, it's not hard.  If you are on Windows you'll need to download a "dd" tool to create the image on your SD card.  You cannot do this operation with the MicroSD card in the nook (image will be created but root will not work).  NOTE: Your SD Card will be deleted.

3) Start the nookColor with the special SD card and let it do the magic.
The nookDev page has some good post-install instructions but honestly mine didn't follow the path they had very well. The big deal is to get your google id setup in the tool for the market, etc. It does seem after installing from the Market a reboot is required before the new apps show up on "Extras" page.