A few questions..
How big of a micro-sd card will I need to buy to be able to boot Froyo off of it?
Is there a guide anywhere that I can use to help me load Froyo onto the card and then how to boot off of it using my nook?
Can the nook play movies when using the froyo boot disk? I already know it can run a lot of the apps from the Android store.
2GB minimum, but you'll want at least 8GB, especially if you want to put movies on there. The most important issue is speed. Get no less than class 6 card. Class 10 preferred. You'll have an extremely hard time finding a class 10 card, and not an easy time finding a class 6 card locally, so best buy one from the interent.
Running Nookie Froyo from the SD card is a start to get your feet wet, but you'll soon want more.
As for directions, go to the top of this forum, click on all things root, and take a look at the stickys there. Step by step guides to doing this.
Or you can just go here:
http://forum.xda-developers.com/showthread.php?t=922324
As for getting it to run, just put the card in with your NC off, and turn on. Done!
NC is hardwired to boot from SD card, so when you take it out, it's like it was never there. As I said before, performance is OK, but eventually you'll want to install Froyo to internal memory for better performance.........or even better, install CM7 (gingerbread) or it's derrivitives like Phiremod. Soooooooo much better.