To clarify, copy the update.zip file to the root, or top level, folder that comes up when you connect the nook.
I too ran the update. I too found that the overall response is a little more zippy.
One interesting note: I didn't lose any content after the update, as one user reported. Not only that, but my NovaLauncher was still intact.
(You get stuck in a loop, when it comes back up after the update, but it's easy to exit that.)
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