How do I convert a nook tablet to android?

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The Nook cannot upgrade to any version.

In theory, you can jailbreak the Nook and turn it into an Android.
This is not recommended, because it is generally considered more trouble than it is worth. (You have to get a android OS, your warranty is voided, etc.)

Have you tried resetting it find it in options and if the problem still exist then you might need to replace the touch censor.

If the o.s. is android, open the application page, then "parameters" or settings, then in "personal" paragraph open "save and reset" (or so, my tablet is not in English). There you will find "factory reset" which erases all data.
It's easy. Good luck!

I think the phrase you are asking about is not "Reset" but rather "Root"

Root is the process of removing the restrictions from software. In this case, the Nook Tablet was designed with the Android OS, and then Barnes and Noble added their "software" on top of it, setting restrictions to the Android OS. an example would be, unable to visit the website Amazon.

Search the forums for XDA Developers as they are constantly updating their information. I have successfully "rooted" my Nook Tablet using an SD Card approach, and have had access to all the features of the internet as well as Google Play store.

Only reason I did it, my wife's games; Temple Run ($15 B&N, $1.99 GPlay)

Best Solution, sell it or return it, if possible, buy a Android only Tablet (Nexus, ASUS, Polaroid, Samsung, etc..)

You might not be able to get Nook for your device for several reasons, most you cant do anything about.

But anyway, try installing from http://www.appbrain.com/app/nook-for-android-by-b-n/bn.ereader .
It should work.

first you will need to go to Settings > applications > and then checkmark unknown sources. Then you will have to go to your file manager (like astro) and click on the .apk. The android installer will run and install the app.