I could not work out how to root and lag fix after froyo upgrade. Also I found this helped...
I concure, back up your apps and data if you want and do a factory reset from the settings. I used mMy Backup for data and App List Backup for apps, as my backup will backup apps but apparently they cannot then be upgraded.
I upgraded to froyo a while ago and the lag got worse and worse, with swype not working properly, plus I noticed the battery life was instantly worse. Eventually I had many force closes a day.
I did a factory reset and now I see how froyo is faster! And the battery lasts twice as long!
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