The Nook Color eReader is one step closer to realizing its potential as full-fledged Android tablet. Barnes & Noble today announced a new firmware update for the $250 Nook Color that adds integrated email, as well as a dedicated app store.

According to a press release, Barnes & Noble will offer a selection of free apps and paid apps, with approximately half of the collection available for $2.99 or less and the vast majority priced at $5.99 or less.

All updated Nook Color devices will now include Nook Email and Nook Friends apps preloaded in addition to Pandora Internet Radio, Crossword Puzzle, Sudoku, Chess, Contacts and Gallery.  Nook Email is a fully integrated unified inbox that will allow Nook Color users to get email from account on Gmail and Yahoo! in one spot.

This latest firmware update bumps the Nook Color’s existing version of Google’s Android OS from 2.1 to 2.2 (Froyo), which offers system improvements. With Froyo, the Nook Color now includes support for Adobe Flash Player, and Adobe AIR.

Nook Color customers can download the update here, or they can wait for the free over-the-air update, which will begin rolling out to customers via Wi-Fi in the coming weeks.

Today’s announcement won’t be the first time that apps have run on the Nook Color. Users have been rooting Barnes & Noble’s eReader for months, a process that voids the device’s warranty but allows the Nook Color full access to the Android Market.

Check out the video below for a look at what’s new on the Nook Color: