First of all thanks to Amon_RA @ XDA and Koush at http://www.koushikdutta.com/ for this. I had no part in creating this. I am just providing a how to flash it.
First let me say I am on a Mac. If you are on windows the adb commands should work fine but I can't say how to get adb working for you.
1. download flash_image Here Updated Link 3/17/10
2. Open the terminal and copy and paste the following commands.
adb shell [hit enter]
su [hit enter]
mount -o remount,rw -t yaffs2 /dev/block/mtdblock3 /system [hit enter]
3. In a new terminal window (don't close the original one).
adb push flash_image /system/bin [hit enter]
exit [hit enter]
4. Now in the original terminal window
chmod 755 /system/bin/flash_image [hit enter]
5. Now exit all termainl windows and reboot your phone.
6. Download Koush's recovery Here or
Amon_AR's recovery Here.
7. Mount your phones sd card and drop recovery-RA-eris-v1.6.2.img on to it and eject
8. Open the Terminal and copy and paste the following commands with the phone connected
to your computer.
8. adb shell [hit enter]
9. su [hit enter]
10. flash_image recovery /sdcard/recovery-RA-eris-v1.6.2.img
11. To get into recovery turn off you phone and hold the Volume Up + Power until it boots into recovery.
Disclaimer: I am not responsible for any damage you may do to your phone.
I am only providing instructions on what worked for me. This is very beta. Good luck. Enjoy the nandroid goodness.