Ubuntu faced some challenges I got it to work with Debian instead. Feel free to read through this thread as there is some good info, but I've asked to have it closed to further comments and the discussion will take place in this thread here with the correct instructions.
Props to Chris for this message.
I have been doing this since 2009 (On a G1) and recently heard that I'm one of the only ones who has done it (Droid).
You will need,
A kernel made by chevy or any other kernel with ext2 support (May need to alter guide)
The ext2 update from here also
A froyo rom (I'm using bb 0.4)
Debian files torrent http://torrents.thepiratebay.org/570...56.TPB.torrent
Flash chevys kernel + ext2 module.
Dl and copy the debian folder to the root of the sdcard.
Open android terminal and type
Now download and open up android vnc and put inCode:start
Color format: 24 bit
Then press connect and Ta Da.
Nice and simple right?
Format sdcard ( I had to do this alot)
Make sure you installed and did everything correctly.
MAKE SURE ALL APPS ARE ON PHONE AND NOT SDCARD. (I had to do this with androidvnc)