I have looked around and can't seem to find a comprehensive and up to date post outlining the process...
As we are officially supported by cyanogenmod instructions are on the CM wiki page http://wiki.cyanogenmod.com/wiki/Motorola_Droid_2
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Last edited by JBirdVegas; 07-01-2011 at 06:35 PM.
JBird...see this and the next post - I think there are some issues w/the instructions....
[DEV_THREAD] CyanogenMod 7 (BASED) port for Droid 2 based of cvpcs cm4dx - Page 178
If you get the Team Black Hat app (google it, is available on the web, not sure if it's still in the Market), and use it to download the 2.3.20 SBF zip file they offer, you can use Clockwork Recovery to flash that file to get your system back to stock Froyo 2.3.20 rather than using software to flash your phone from your computer.
Once you're on stock Froyo you'll have to find a Froyo root option that doesn't require a computer - not sure what's out there, frankly...you'd have to look around. If you can find a Droid-based root option, the remaining steps are all done from the device.