We've had this question in the forums, and it's important to consider your options before you purchase. If you think you'll be using your nook for a few years (or like me passing it down to your book-worm son) you may want to consider protecting your investment.

The nook does come with a one year warranty. It doesn't cover dropping the device or dumping a cup of Java on it.

Options

• Self-insure
  This is my policy. I buy a lot of gadgets and find they generally don't break in 24-36 months. I keep my money in my pocket and think about all I've saved when something breaks! I recently put a new hard drive in my iMac for $250. I got a larger drive and it's still not more than the Apple Care (which would have been expiring soon).

• Get a Warranty from B&N
  The B&N plan adds a year to the warranty you get with your nook (making it a 2 year) and covers accidental damage (which the regular one does not). The cost is $69. Technically you are required to do this at the time of your purchase. Apparently some stores have been allowing people to return it and re-purchase it with a warranty. Of course if you've opened it you'll likely pay a restocking fee even if you are this lucky. Just order it with your nook if you want one from B&N.
• Get a 3rd Party Warranty
  Companies like Square Trade offer a three year deals for $39 ($16 extra for drops, spills, and other damage). You have to do this within the first 30 days of purchasing the nook.

Summary

Consider if you really need a warranty and what kind. Maybe today is the day to start saying "no" to overpriced warranties! If you are worried about the quality of the nook device consider the $39 Square Trade plan. If you are concerned about damaging your nook and like dealing directly with B&N - I'd just spend the big dollars with them.

Let us know your experiences with warranty work and any other 3rd parties you find!