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I have been mostly pleased with improvements present in version 1.2.0 of the latest Nook Color firmware update, scrolling has been faster, Flash is supported and performance generally seems a small bit faster. One so-called improvement I wish could be given back are the obscenely huge icons that appear on the home screen after running an application.
Removal is easy enough – inversely proportional to the size of the icons I suppose – a simple tap and hold of the monolith in question will suffice until a menu appears at screen centre. Tap the bottom Remove from home option on the menu and the icon will disappear revealing the missing 25% of your much missed background wallpaper image once again.
Any fears that your application is being permanently removed are unwarranted, you will have ample opportunity to experience the joys of icon removal over and over again.