I would just like to thank Danfrance for this excellent FAQ. Having grown tired of memory issues I decided to bite the bullet and root so I could install the rooted stock rom with apps2sd+, what a difference it has made!!
My phone was down to 18mb free (and this was after removing flash updates) and now with everything back installed on the phone I have 97Mb free :-)
I had a major issue with unrevoked3 failing every time on both my win7 machine and my mac, after much head scratching I remembered something important, previously I had used this guide (Lorin Bute - Home - How to force apps to move to the SD card onFroyo
) to allow me to force apps to sd by setting "pm setInstallLocation 2" and it was this that was borking unrevoked3 as it was installing the rooting service to sd and on reboot the sdcard was not being mounted quick enough, changing back to "pm setInstallLocation 0" fixed the problem and the root worked perfectly.
It might be worth making an entry in the FAQ about anyone having done the "force apps to SD" trick in the past to undo it before rooting.