Your description sounds like a failed e-ink display. The unit is still under warranty. Call customer support and they should offer a replacement.
Ask for Rapid Replacement and do not send in your current nook until you receive the replacement. If you send your old nook in before receiving a replacement BN or whoever handles depot repair for them seems to get confused and it could delay the delivery of your replacement.
I've gone through different problems with the Nooks--first the original, and then the NST. If you have your product replaced, DO NOT let them send you a refurbished unit. You purchased a new one, and if it's faulty, you should receive a new one. The first Nook I had--although I treated it gently--cracked on the faceplate. Later, I learned that was a common problem with that model. They sent me a refurbished unit, which didn't last long. It just quit on me. Then, thanks to this forum, I was sent a Simple Touch, because they were out of the originals. After six weeks, that unit froze up. There is a thread about that in this forum also. Instead of going through the phone calls and the hassle associated with that, I used the chat feature on the B&N site. It was much easier, and more satisfactory. At first, I was sent a new charger plug & cord, and when that didn't work, I was sent a new unit. Hope this helps--Good Luck!!
i did call the 1-800 number and spoke with a person whose english was NOT their first language and thought oh boy here we go. But after trying to explain what was wrong i eventually got an email stating i needed a replacement...and i was pleasantly surprised that i got to go to the local B&N to get it!
Just got there today and in fact did get a brand new Nook simple Touch! was disappointed to see that there is already a new simple touch with a glow light UGH oh well! i am charging my new Nook as i write this. i am hoping for good turnout!!
thanks for all the help and comments!!