NOTICE 02/01/2013:
due to the nature of this instructable and the many failures that have been had by many fellow makers, i will no longer be providing support for you if you mess up your pandigital tablet. i have now in the last year alone not even have owned one of these silly things, so let it be made known, if you continue, your on your own!, so sucsess of failure will be determined on your comprehension and exact execution of these instructions.
so it occured to me yesterday that this stupid pandigital e-reader was actually a super locked down version of andriod that lacked the regular interface, i mean Heck, it said it ran on android right on the side of the box! but since it was supposed to be a 'e-reader' the manufacture locked down the front end of the system (not cool guys) so it would preform one task and one task only, but were gonna change that and this is how:
btw: your gonna need a sd card:]
UPDATE!
after a large community response to the flaws with pandigital's download site and their android open platform , and a desire to have the android market place, the ability to change the background, retain the ability to read E-books, and many other features its lacked, i have done extensive research into how to add this functionality back in, but in doing so i have discovered someone who has already done so, this individual goes by the name jackbox he is a member of the slatedroid forum he released 3 versions of his work all of which i have briefly tested and the best one is his second version which you can download from media fire here their is only one problem with it is that you still cant change the background easily but i found an app called AndroPaint Lite which can be installed by just copying it to the sd card and selecting it through the file browser to install it, this should give you the ability to change the background which you can download from this instructable. thanks goes out to slatedroid member jackbox!
UPDATE!
due to users being fruskrated with thier device regardless what they try to do to it, i am including a list of urls that will tell how to restore the device back to factory settings so they can return it and get their money back cause ill admit it the pandigital novel is a complete piece of crap not worth the money.
WHERE TO GET FACTORY FIRMWARE AND HOW TO USE IT :http://www.pandigital.net/?PageID=391

• Pandigital Novel Upgrader Exe
• Pandigital Novel Upgrade Problems
• Pandigital Novel Upgrade To Android
• Pandigital Novel Firmware

I’m trying to root my black Pandigital Novel 7” Multimedia e-reader to an Android tablet. I’ve tried Pandigital Novel Black upgrader version 6.2.01 (U.S. Version) Pandigital Novel Black upgrader version 6.2.01 (Canadian version) Each time I get the error: (sorry, not sure how to insert picture. But its long and has a huge list with it). Jan 20, 2011  Hi, I’ve been trying to update my pandigital novel black 7 inch version and nothing happens. I downloaded the long file.dat and pressed the power and + button for 5 seconds. A screen came up with words and after abouth 5 seconds, it booted up to the orginal and normal screen.

Pandigital Novel Upgrader Exe

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Pandigital Novel Upgrade Problems

This page contains information about installing the latest Pandigital driver downloads using the Pandigital Driver Update Tool.

Pandigital drivers are tiny programs that enable your Pandigital hardware to communicate with your operating system software. Maintaining updated Pandigital software prevents crashes and maximizes hardware and system performance. Using outdated or corrupt Pandigital drivers can cause system errors, crashes, and cause your computer or hardware to fail. Furthermore, installing the wrong Pandigital drivers can make these problems even worse.

Pandigital Novel Upgrade To Android

Recommendation: If you are inexperienced with updating Pandigital device drivers manually, we highly recommend downloading the Pandigital Driver Utility. This tool will download and update the correct Pandigital driver versions automatically, protecting you against installing the wrong Pandigital drivers.

Pandigital Novel Firmware