I have tried doing this but when i do it wont boot to the new sprecovery and I loose root access after reboot. Is there a easier way to do this through a nandroid backup?
-Plug in your DROID to your PC, Copy the 0.99.2b IMG file to your SD card first, then copy the Droid Root Helper APK to the SD card. (Download here: AllDroid.org - Information
-on your phone, Install the DroidRootHelper APK using a file manager (Like Astro)
-Run DroidRoot Helper
-Click on "Mount mtdblock3 System read/write"
-Click "Rename recovery-from-boot.p" (This will make sure your new Sprecovery stays permanent)
-Click on "Install and chmod busybox(installs to /system/bin)"
-Click on "Install and chmod flash_image (busybox must be installed first)
-NOW EXIT THE PRGRAM
-your phone should still be plugged into your PC via USB (make sure you have Debug mode enabled on your phone)
-go to your dos prompt, and navigate to your ADB tools folder
-install the new SPrecovery to your phone by running the following command:
flash_image recovery /sdcard/recovery-0.99.2b.img
-wait a minute or so, it should only take like 30 seconds to flash but there is no status bar or indicator so I like to wait a little bit.
-now Power off your DROID, then unplug the USB cable
-Power it on WHILE HOLDING THE X KEY