Hi, Cammy!
There are two different situations with "было" + full adjective. You are absolutely right, adjectives could be either in nominative case (именительный) or instrumental case (творительный).
If adjective refers to the subject, you should use nominative case - "был тёплый день" день (КАКОЙ?) -- тёплый.
If adjective refers to the predicate, it's much better to use instrumental case - "день был тёплым". Here the second noun is just missed, the full sentence is "день был (КАКИМ?) тёплым (днём)". This second noun used extremely rarely, may be in poetry and so on.
In previous centuries we used nominative case as a predicate, but nowadays it sounds totally archaic.