It eventually read the nook_1_2_update.zip file and completed the update. I don’t think it was anything I did, after sitting there for quite a while at the Welcome screen, it finally indicated it was installing the update. I was then able to use it with my nook account (which is all I was really after). However, I was still not able to get to the factory button … not sure if that is only available if device has not actually been registered yet, or what….