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Also, if you get the app "cachemate" it will allow you to clear the caches of your apps, as well as the histories from browser, market, dolphin and a bunch of other apps/services
Rooting is the equivalent of "jailbreaking" when referring to the iPhone, if you've ever heard of that. It allows you access to system files so you can tweak your phone's capabilities. Check out the "Droid Hacks" subsection and read the stickies.