Yes, USB debugging has to be on.
Make sure, under device manager in windows, that it says Android 1.0 driver (or something similar). If it does, you should be good to go.
Followed the directions on page 1 and it worked like a charm. It's definitely a long first boot. I had previously installed ADB for rooting my Thunderbolt, so the PDANet install required me to uninstall those drivers as part of the process, but everything else was straight forward and easy.
Once you get to the list of drivers there is an option to select from a list of manufacturers with drivers installed on your comp. Choose the one that says Samsung phone. Then you should get the option to select the adb driver.
Try this before you fastboot. Power the phone on normally and plug it into your computer. USB debugging on. Wait for windows to automatically install the drivers. After this is done, unplug your phone. Now run the pdanet installer. It will prompt you to plug your phone in. From this point, follow the installer instructions to a "T" and you should be fine. After pdanet installs, unplug your phone and power down. Now, open device manager. Boot your phone into the bootloader (three finger salute). Now connect your phone to computer. In the device manager window, you should see Samsung (something...) followed by Android 1.0 driver (or something similar). Once you see this, you're good to go. Go ahead and double click install-superboot-windows from the root of your computer's C drive. Let me know if this works.
More than likely the device is going to hang on the Google screen. This is fine, don't panic. Let it sit for 5 minutes. If it doesn't reboot on its own, now do a battery pull. Boot up normally and enjoy your superuser privileges.
All I did to install was..
1. Plug in phone
2. Downloaded the PDAnet/Drivers file
3. Install, click the Samsung phone choice
4. Reboot computer
5. Boot computer up, plug in phone, and the drivers should finish install instead of saying error on the last step
6. Boot off phone, get into the bootloader then replug it back into the computer
7. Type cmd in the Start menue
8. Once the prompt is open and the phone is plugged in, type in "cd C:/", then, "cd root", then "fastboot-windows oem unlock". Make sure that the "root" folder is in C: before doing this.
9. You should be brought up to the "Unlock" option, click it using power button.
Your phone is now unlocked.
1. Go into the "root" folder in C:
2. Click and install
3. Follow instructions, and it should reboot. It may stay on Google for like 3 minutes, then flash and it'll show up on the google screen and reboot normally.
Note: I did the update before all this.
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