It appears to be working!
Here is what I did....
+ I used windows to write the generic image to the sd card with winimage.
+ Then I used Easus to stretch the boot partition to 500 megs
+ Placed the latest nightly into the boot partition
+ Booted the Nook- Bam it worked
+ Booted into CM7 enabled wifi
+ Placed GAPPS 20110828 into the boot partition
+ Booted into CM7, Pressed power button selected shutdown and selected recovery mode
All is well- from there I signed into my google account (I thought someone before had said to skip that?) and the only thing I did NOT check was for google to restore this device from my account. I accidentally clicked next- and didnt see a couple of the check-boxes.... anyone know what they were?
What I did differently was:
Did not use DD in Mac- did all in windows
Made the partition 500 megs
**** I suspect this may be something --- Safari in OSX by default will expand any zip files it downloads (mostly) so I was having to rezip the files before placing them on the sdcard. I switched to firefox and bam the downloaded untouched.
Now I have to go do some reading on what the initial check boxes were unless someone wants to post em here for anyone in the future- and go look at all the threads on why youtube isnt working....
THANKS FOR ALL YOUR HELP!