Any update on instructions for this?  I really want to use some Nook Simple Touch's for a Home Automation panel (so there isn't a backlight at night/low power usage) and this seems to be what I'm looking for!

Sorry, about the long wait for me to reply. I will get you instructions for tommorrow.

What you need to do.

1. Root your Nook Touch.

2. Get Third Party apps for Android VNC Viewer (make sure its Android 2.1) and get Terminal Emulator from third party source for Android 2.1. Download them to your sdcard.

3. Make sure you have busybox installed.

4. Download the ubuntuv6 scripts. And the disc image files and store on sdcard for nook https://sourceforge.net/projects/linuxonandroid/files/Ubuntu/10.10/ (has to be older ubuntu version)

5. Get into the terminal app and enter SU into the command prompt. 

6. cd /

7 cd /sdcard

8 sh whatevername it is ubuntuv6 scripts

9 Create swap files (cat /dev/urandom > swap.swp. Let it run for 60 seconds. and shut down nook. Reboot)

10 repeat steps 5

11. mkswap swap.swp

12 swapon swap.swp

13. pgrep vnc

14 kill id of vnc

15 vncviewer -geometry 800x600

16 Set up vncpassword

17 More instructions to follow.

Is that an e-Ink display? Also, why are you running backtrack and not Kali?  Backtrack was discontinued some time ago.

I've tried getting a kali image to chroot, but it just won't work! (for now)