I'm getting further reports that the RSDLite SBF flash works, which is what I suspected, but there's risk with this method.
Alright, here we go...
Step 1: go here and read the first post at least twice until it makes sense.
http://www.droidforums.net/forum/hacking-faqs/39254-sbf-root-unroot.html
Step 2: watch this video and follow it carefully.
Video: Flashing SPRecovery SBF to Stock 2.1 | Droid Life: A Droid Community Blog
Step 3: make a Nandroid Backup.
Boot into recovery by powering the phone down, holding down the x key, and powering the phone up. Continue holding the x key till you boot into recovery. At this point navigate SPRecovery to the backup/restore menu and make a simple nandroid backup. Once you've done this you can flash anything you want that comes in an update.zip format, be it a ROM, kernel, or theme.
Step 4: pick a ROM, any ROM.
I'd suggest either a rooted "stock" FRG01A or FRG22 ROM, or biting the bullet and going for another built-from-source ROM like CyanogenMod -- CyanogenMod is very stock-like in its look and feel, so it's a good choice if you're testing the waters. You could also download ClockworkMOD from the market and use it to do all your flashing. It's much simpler, but it also handles things differently. However, it will walk you through the installs itself.
To install under SPRecovery, follow this vid.
Video: Installing a Custom ROM Using SPRecovery | Droid Life: A Droid Community Blog
If it boots and you like it, make a nandroid backup.
Step 5: pick a kernel, any kernel, but not all kernels will work for you.
Every kernel has different features; ChevyNo1 has awesome ULV (Ultra-Low Voltage) kernels that many people swear by. If they're going to work for you, they'll probably work very well. He also cooks up LV and SV kernels if the ULV won't work. P3Droid has kernels that work for almost everyone, and have the added advantage (to some) of possibly clocking as low as 125Mhz for battery savings. Speaking of which, ULV will use less juice than an LV, which will use less juice than SV/MV kernels. Install in SPRecovery is the same as any other update.zip.
Step 6: flash the kernel (but not in Texas, that'll get you arrested for indecent exposure)
Follow the video listed for flashing in the ROM. It's the same process. If you get stuck in a bootloop, pull the battery, reboot into recovery, and restore your nandroid. Aren't you glad you made it now?
Step 7: install SetCPU from the market
Kinda self explanatory. Follow the on-screen instructions once you have it loaded and run from there. Be careful, go slowly, and don't be afraid to try other kernels if the one you have doesn't work so well. Just remember to nandroid backup/restore as needed.
If you need more help, let me know. I'm supposed to be working on a post-root guide for noobs, but I'm falling behind with everything that's been going on in my personal life recently. I should have it up shortly.