Updated steps for root:
(this assumes linux with adb in the current directory)
wget
http://zenthought.org/tmp/asroot2
wget
http://bit.ly/brI0EV (superuser 2.1)
extract this and copy Superuser.apk and su to your sdcard
./adb push asroot2 /data/local/ && ./adb shell chmod 0755 /data/local/asroot2
./adb shell
/data/local/asroot2 /system/bin/sh
(at this point your $ prompt should be a # meaning you are root)
mount -o remount,rw -t yaffs2 /dev/block/mtdblock4 /system
cat /sdcard/Superuser.apk > /system/apps/Superuser.apk
cat /sdcard/su > /system/bin/su
chmod 06755 /system/bin/su
install terminal emulator on phone and try su to test, you should get a dialog that says "this app wants root access Allow Deny"