Where to place sideloaded books in Nook Color?

[vitalichka]

I have 4GB SD card in my Nook Color.
It seems that when I place backed up downloaded books (from B&N) on the SD card into the folder 'B&N Downloads, Nook Color does not recognize them and asks me to download them which creates another copy on the device.

I used to own the original nook e-ink and I remember it had folders called 'my B&N downloads' where B&N books would go and 'my documents' where sideloads would go.

But now with the Nook Color I have folders on the device as follows
'B&N Downloads' which contain numerous folders which contain books in books folder.

There is also the 'My Files' folder which contains a bunch of folders including both 'Books' and 'Documents'

So where do I place the sideloaded books?

And it also seems like PDFs don't allow me to highlight or take notes, or use the dictionary. Long presses in PDFs do nothing. The post can be found here.

Any help?

Thanks