I carefully followed the steps and got it working. Snappy!
Bugs to report:
Live wallpapers make the phone unstable and laggy. Twice my phone froze and the rebooted all by itself like 30 seconds to a minute later. This occored when I turned on the "live wallpapers".
Nexus live wallpaper doesn't work at all but just shows black background.
Shuterbug app was doing weird things so I uninstalled it.
Scrolling in the browser is still a bit laggy. Not horrible or anything but it doesn't just move around freely in 1 to 1 movement with your finger.
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Happy that GPS, Wifi and Bluetooth are all working great.
Sucks that hands free voice dialing over Bluetooth is still not implemented in Android 2.1
If I use normal static wallpaper, everything runs great and smooth. Really can notice the speed improvements.