Right now, buy.com has refurbished 1st gen Nooks sold by Barnes and Noble for $99. Seems like a pretty good deal to me. While not the fancy tablet of the new Nook, and according to reviews, not quite as good as the Kindle, but you seem to get a lot for your money here if you are looking for an e-reader and quasi-tablet.
As a final note, the Nook supports EPUB, which is the digital format that most libraries use - so you might be able to get more free books out of one of these than a Kindle, though I think the Kindle still has the larger library of books you can pay for.
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