For a straight up ereader the Kindle is great. E ink technology is much better if you're planning to read outside in the sun. The Nook Color has more tricks up it's sleeve like ips display and ability to be modded into a full fledged Android tablet. It also has the Android web browser and some nifty magazine features.
If it's just for reading books I'd say Kindle. Keep in mind that I'm not an avid reader but I like to keep up with the technology and I have played with both a bit.
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