This is a quick guide on how to update your nook to 1.1 together with restoring it to factory settings/unrooting it. It can be also used if you were trying to root you Nook Simple Touch and messed it up.
To begin with you will need Win32 Image Writter to mount the recovery image onto your SD card. It is pretty straightforward, but sometimes Imager has problems with laptop card reader. To solve Error 5 or Error 8 in Win32 Image Writer I recommend using Panasonic SD Formatter to restore your SD card to original size if you were using it to root your Nook before. Be sure to check the format size adjustment option on.
Select 128mb_clockwork-rc2.img and write it onto your Sd card
Than, copy Alpha-FormatTouch-2.zip to the root folder of your SD card so it looks like this
Afterwards, just follow the video to finish restoring your Nook to factory settings