Finally got it figured out ! Must have busybox installed if you want to use cp (and possibly ln). All commands below assume you have root access.
First, get TunnelDroid from the market place. Then, copy your client OpenVPN files to the openvpn directory on your SD card. This includes your client cert, client key, server ca.crt, and client .ovpn config file.
Now this is where you've gotta do some work. The Droid does not have the tun.ko module needed to create the VPN tunnel. Get it from here (just download the tun.ko):
get-a-robot-vpnc - Project Hosting on Google Code
Then remount your file system to r/w and copy the tun.ko module to your /system/lib/modules directory
Then grab the OpenVPN binaries from here (zipped, at the bottom of the list):
mount -o remount,rw /dev/block/mtdblock4 /system
cp /sdcard/tun.ko /system/lib/modules/tun.ko
Browse TunnelDroid Files on SourceForge.net
Now follow these instructions:
You can either use the sdk and use adb, or you can use "cp" from a terminal on your phone.
Step 1 - Take back and secure externally - optional, but always a good idea.
Step 2 - Make a backup of the original files, you never know...
> adb shell remount
> adb shell
# cd /system/lib
# cp libcrypto.so libcrypto-orig.so
# cp libssl.so libssl-orig.so
Step 3 - Perform the following text commands at a command prompt
From the unzipped fries download find all the files (should be 5 in total) and do
> adb shell remount
> adb push libcrypto.so /system/lib/
> adb push liblzo.so /system/lib/
> adb push libssl.so /system/lib/
> adb push openvpn /system/bin/
Then reboot the phone
Make sure you have a kernel with the tun device installed and loaded.
One addition to the procedure directly above is that I had to change the permissions on the openvpn binary:
Then, load the tun.ko module:
chmod 755 /system/bin/openvpn
Now, in this version of TunnelDroid at the time of this post, it looks to /system/xbin for the "ifconfig" and "route" binaries. Since the Droid doesn't have these binaries in the /system/xbin folder, you can make sym links:
Now you should be able to open TunnelDroid, see your .ovpn client config file, and connect!!!
ln -s /system/bin/ifconfig ifconfig
ln -s /system/bin/route route
Works over wifi and 3G.