The Nook Color does have a better Web browser than most e-book readers, and runs on an Android operating system, but it can't compare in multipurpose prowess to the Apple iPad or Samsung Galaxy Tab. For example, the Nook Color doesn't offer close to the number of apps or functions of those devices; B&N says it will eventually offer a "curated" apps store, but it's unclear how many of the thousands of apps in the Android Marketplace will be included.

But the Nook Color's touch screen is made for reading: It beats even the iPad in the crispness of its type. And at $249, the Nook Color's price is much lower than the iPad's.

One con, though, is its weight: at 15.8 ounces, the Nook Color is relatively heavy compared with other e-book readers such as the (black-and-white screen) Kindle 3G + Wi-Fi, which weighs about 8 ounces. There's also no 3G version for people who want to download new content on the go. And the Nook Color costs about $100 more than the black-and-white Nook Wi-Fi, which remains on the market, or the Kindle Wi-Fi, though both are black-and-white models with slightly smaller screens that lack touch capability.

But do e-book readers really need color and video capabilities? Maybe not so much right now, but Paul says more compelling color and interactive content is on its way. So people who have been waiting for color and don't mind an additional $100 on the price tag will want to consider the Nook Color.

We'll continue to test the Nook Color and expect to add it to our Ratings shortly (available to subscribers).

—Carol Mangis