Barnes & Noble announced that it has released the long-awaited Nook Color 1.2 software update on Wednesday. The update brings Android 2.2 "Froyo" and Flash 10.1, along with Barnes & Noble's Nook-specific app "shop," loaded with 125 of the most "sought after" apps. At $249, the 7" Android device may be one of the best values in a tablet device.

The Nook Color has always been positioned primarily as a reading device enhanced with a full color screen. It's smaller and lighter than an iPad, but slightly bulkier than a Kindle. While the screen isn't as sharp as typical e-ink displays, it has a respectable 169 ppi density, is backlit, and doesn't suffer from the dreaded page turning lag. In our review, we concluded that "if you want a small Web tablet, the Nook is obviously superior" to the Kindle, and at half the price is easier on the wallet than an iPad.

The updated software further enhances that experience with apps developed specifically for the Nook Color, including Pandora, Angry Birds, Epicurious, and more. Barnes & Noble has also built in a full-fledged e-mail client compatible with any IMAP or POP account. Taking full advantage of the device's color LCD display, Nook Color users can also view Flash video as well as hundreds of enhanced, interactive books with audio and video content. Barnes & Noble's digital store includes 350 interactive children's story books, 225 interactive titles for teens and adults, and 150 interactive newspaper and magazine titles.

Unlike other Android devices, the Nook Color can't access the Android Marketplace. Instead, Barnes & Noble offers its own "app shop" where users can buy apps developed specifically for the Nook using a special SDK. Claudia Romanini Backus, Barnes & Noble's director of developer relations, stressed during a press conference Wednesday morning that the company isn't trying to build the largest selection of apps, but rather to build a well-curated selection of high-quality apps in an "easy to access way."

As a result of the Froyo update, the Nook Color's Web browsing experience has been enhanced. In addition to numerous improvements to the underlying WebKit engine, the browser also has (for better or worse) integration with Adobe Flash 10.1. While Barnes & Noble representatives repeatedly discussed using Flash for video, it can access and render all types of Flash content. As for Flash's performance on the device's 800MHz TI OMAP processor, president of digital products Jamie Iannone would only say that it "works pretty well," though Engadget's hands-on with a late build of the software update revealed "noticeable lag at times when playing videos or scrolling about on pages with animations." Iannone said that the company would work closely with Adobe to improve performance over time.

Iannone also discussed a new beta app developed in-house called "Nook Friends." This app, available starting today, integrates with Facebook and Twitter as well as the device's built-in contact list. Users can discuss which books they are reading and make recommendations, as well as follow the recommendations of others. It also includes integration with Nook's lending capabilities, making it easier to lend a book or request to borrow a book from a friend.

Iannone stressed that the Nook Color is still designed to primarily be a reading device, but that the new software enhancements bring the most requested features of the tablet experience to the platform. "If you love reading, this is your tablet," he said.

The Nook Color 1.2 update is available via manual download now, though Barnes & Noble will be rolling it out automatically in the next few weeks.