A.G.
Go with the Nook Tablet. It takes micro SD disks and I can fit 3-4 kid movies on it, depending on how long the movie. If you download movies, make sure you don't download all the extras (Bonus features, games, etc etc) and download J. the movie.
If you are choosing btwn the Kindle and Nook you basically have to decide btwn the world's larget bookseller vs the world's largest online retailer. Since I needed something to read books, I chose the Nook. but to M., the Nook and Kindle were almost exactly alike when it came to using it to read and play games. My Nook is actually pretty fast when I'm on the internet.
Plus, I can go into any Barne & Noble and have my Nook service by an actual person for free, rather that on the phone with a Kindle.
You can get games, books and other kinds of entertaining apps with the Nook, whereas a DVD player you can only watch movies. Some kids need more activity in the car than J. watching movies. And the Nook is portable, so she can take it in with her if she stops for a bite to eat, but you can't do that w/o alot of plugging/unplugging/adjustting/setting up etc etc for a DVD player.