[Nook Color Q&A, Help & Troubleshooting] sagirfahmid3:
If anyone is interested in the boot process of the Nook Color, here is a diagram:

If anyone is interested about the contents of the STOCK init.encore.rc from CM7.2 Mirage ROM, here's what it contains:

on early-init
start hwprops

on init

# setup global environment
export PHONE_STORAGE /mnt/emmc
export DSP_PATH /system/lib/dsp
export DEFAULT_BASEIMAGE /system/lib/dsp/baseimage.dof

# create mountpoints
mkdir /mnt/emmc 0000 system system
mkdir /mnt/usbdisk 0000 system system
symlink /mnt/emmc /emmc
symlink /mnt/usbdisk /usbdisk

# for encore
mkdir /rom 0777 root root

on fs
# mount partitions
mount vfat /dev/block/mmcblk0p2 /rom sync noatime nodiratime uid=1000,gid=1000,fmask=117,dmask=007
mount ext4 /dev/block/mmcblk0p5 /system wait ro barrier=1
mount ext4 /dev/block/mmcblk0p6 /data wait noatime nosuid nodev barrier=1 noauto_da_alloc
mount ext4 /dev/block/mmcblk0p7 /cache wait noatime nosuid nodev barrier=1

on post-fs
# load kernel modules
#insmod /system/lib/modules/bridgedriver.ko
#insmod /system/lib/modules/dm-mod.ko
#insmod /system/lib/modules/dm-crypt.ko
#insmod /system/lib/modules/tun.ko

# change permissions for alsa nodes
symlink /dev/snd/pcmC0D0c /dev/pcmC0D0c
symlink /dev/snd/pcmC0D0p /dev/pcmC0D0p
symlink /dev/snd/controlC0 /dev/controlC0
symlink /dev/snd/timer /dev/timer
chown audio audio /dev/pcmC0D0c
chown audio audio /dev/pcmC0D0p
chown audio audio /dev/controlC0
chown audio audio /dev/timer

on boot
# wireless
mkdir /data/misc/wifi 0770 wifi wifi
mkdir /data/misc/wifi/sockets 0770 wifi wifi
mkdir /data/misc/dhcp 0770 dhcp dhcp
chown dhcp dhcp /data/misc/dhcp

# bluetooth power up/down interface
chown bluetooth bluetooth /sys/class/rfkill/rfkill0/type
chown bluetooth bluetooth /sys/class/rfkill/rfkill0/state
chmod 0660 /sys/class/rfkill/rfkill0/state
# bluetooth uart
chown bluetooth bluetooth /dev/ttyS1

setprop wifi.interface tiwlan0
setprop wlan.driver.status "ok"

# Temporary workaround for SOD
# Only needed for 2.6.29
#write /sys/power/wake_lock 1

# Enable Power Management - thanks NookieFroyo for this

# Mount Debug file system
mount debugfs /sys/kernel/debug /sys/kernel/debug

# Enabling sleep in idle path
write /sys/kernel/debug/pm_debug/sleep_while_idle 1

# Enabling Voltage OFF in idle path
write /sys/kernel/debug/pm_debug/voltage_off_while_idle 1

# Enabling OFF mode
write /sys/kernel/debug/pm_debug/enable_off_mode 1

# Enablig DVFS with ondemand governor
write /sys/devices/system/cpu/cpu0/cpufreq/scaling_governor conservative

# Enabling SmartReflex for Zoom3 OMAP3630
write /sys/power/sr_vdd1_autocomp 1
write /sys/power/sr_vdd2_autocomp 1

# Permissions for setting the DSP Frequency
chown media root /sys/power/dsp_freq

# Permissions for DSP bridge device
chmod 0777 /dev/DspBridge

# Permissions for Overlay
chmod 0777 /dev/video1
chmod 0777 /dev/video2
chmod 0777 /dev/omap-resizer
chmod 0777 /dev/omap-previewer

# change permissions for overlay managers and display devices
chmod 0777 /sys/devices/platform/omapdss/manager0/name
chmod 0777 /sys/devices/platform/omapdss/manager1/name

chmod 0777 /sys/devices/platform/omapdss/display0/name

chmod 0777 /sys/devices/platform/omapdss/display0/enabled

chmod 0777 /sys/devices/platform/omapdss/display0/timings

chmod 0777 /sys/devices/platform/omapdss/overlay0/manager
chmod 0777 /sys/devices/platform/omapdss/overlay1/manager
chmod 0777 /sys/devices/platform/omapdss/overlay2/manager

chmod 0777 /sys/devices/platform/omapdss/overlay0/enabled
chmod 0777 /sys/devices/platform/omapdss/overlay1/enabled
chmod 0777 /sys/devices/platform/omapdss/overlay2/enabled

# SGX driver
chmod 0666 /dev/pvrsrvkm

#Set read_ahead buffers
write /sys/block/mmcblk0/bdi/read_ahead_kb 1024
write /sys/block/mmcblk1/bdi/read_ahead_kb 1024

# There's no back seek penalty on MMC
write /sys/devices/platform/mmci-omap-hs.1/mmc_host/mmc0/mmc0:0001/block/mmcblk0/queue/iosched/back_seek_penalty 0
# Allow us to seek up to 1GB back
write /sys/devices/platform/mmci-omap-hs.1/mmc_host/mmc0/mmc0:0001/block/mmcblk0/queue/iosched/back_seek_max 1048576
# Only pick one request from each queue at each round robin
write /sys/devices/platform/mmci-omap-hs.1/mmc_host/mmc0/mmc0:0001/block/mmcblk0/queue/iosched/quantum 1

service hwprops /sbin/hwprops
critical
disabled
oneshot

# Initialize the SGX driver
service pvrsrvinit /system/bin/pvrsrvinit
user root
oneshot

# Start of SGX driver
service pvrsrv /system/bin/sh /system/bin/sgx/rc.pvr start
user root
oneshot

# Update the battery data heuristics every hour
service logbatterydata /system/bin/log_battery_data.sh
user root
group root

# OMAP specific services start here

service clearboot /system/bin/clear_bootcnt.sh
user root
group root
oneshot

# OMAP stuff:
# most of this is unused for the moment.

# load DSP firmwarevpl
service baseimage /system/bin/dspexec /system/lib/dsp/baseimage.dof
user root
group audio
oneshot

#service pppd_gprs /etc/init.gprs-pppd /dev/pts/1
# user root
# group radio cache inet misc
# disabled

#service fw3a /system/bin/fw3a_core
# user media
# group system camera

service uim /system/bin/uim-sysfs
user root
group media bluetooth
oneshot

service wlan_loader /system/bin/wlan_loader \
-f /system/etc/wifi/firmware.bin \
-i /system/etc/wifi/tiwlan.ini \
-e /rom/DevConf/WiFiBackupCalibration
disabled
oneshot

service ifcfg_ti /system/bin/ifconfig tiwlan0 up
disabled
oneshot

service wpa_supplicant /system/bin/wpa_supplicant \
-Dtiwlan0 -itiwlan0 -c/data/misc/wifi/wpa_supplicant.conf
socket wpa_tiwlan0 dgram 660 wifi wifi
disabled
oneshot

service dhcpcd_tiwlan0 /system/bin/dhcpcd -ABKL tiwlan0
disabled
oneshot

service iprenew_tiwlan0 /system/bin/dhcpcd -n
disabled
oneshot

I will contact Kuisma with my modified init.encore.rc (not posted here) and see if everything is alright, repack modified initramfs, replace it in the /boot partition, and let you guys know how it goes. If it works, awesomesauce, if it doesn't (and assuming it doesn't brick my Nook Color too hard) I will fix it and retry until I get it right.