If we write $ |x^2 \minus{} 4| < N$ for all $ x$ such that $ |x \minus{} 2| < 0.01$, the smallest value we can use for $ N$ is:

$ \textbf{(A)}\ .0301 \qquad \textbf{(B)}\ .0349 \qquad \textbf{(C)}\ .0399 \qquad \textbf{(D)}\ .0401 \qquad \textbf{(E)}\ .0499 \qquad$
1. We start with the given inequality \( |x^2 - 4| < N \) and the condition \( |x - 2| < 0.01 \). This means that \( x \) is within 0.01 units of 2, i.e., \( 1.99 < x < 2.01 \).

2. We need to find the maximum value of \( |x^2 - 4| \) within the interval \( 1.99 < x < 2.01 \). To do this, we evaluate \( x^2 - 4 \) at the endpoints of the interval \( x = 1.99 \) and \( x = 2.01 \).

3. Calculate \( x^2 - 4 \) at \( x = 1.99 \):
   \[
   (1.99)^2 - 4 = 3.9601 - 4 = -0.0399
   \]
   Therefore, \( |(1.99)^2 - 4| = 0.0399 \).

4. Calculate \( x^2 - 4 \) at \( x = 2.01 \):
   \[
   (2.01)^2 - 4 = 4.0401 - 4 = 0.0401
   \]
   Therefore, \( |(2.01)^2 - 4| = 0.0401 \).

5. The maximum value of \( |x^2 - 4| \) within the interval \( 1.99 < x < 2.01 \) is the larger of the two values calculated above, which is \( 0.0401 \).

6. Thus, the smallest value we can use for \( N \) such that \( |x^2 - 4| < N \) for all \( x \) in the interval \( |x - 2| < 0.01 \) is \( 0.0401 \).

\[
\boxed{0.0401}
\]