B.G.
I have a Nook Color, and I love it. I haven't ever really used a Kindle, so I can't compare. From everything I read in trying to decide, it's really 6 of one, half dozen of the other.
I chose the Nook because there is a Barnes and Noble in town, and the Nook people there are great at answering questions. I love being able to just drive over there and tell them what isn't working or what I need it to do.
It has space for an external disk, so you can store extra books or movies there. If you go to Barnes and Noble with it, you can read any book in the store on your Nook.
I already had some epub books and can read them on my Nook. It was my understanding that Kindles can only read Amazon books.
I'm happy with my Nook.