No one has found a way to root an updated dream/magic yet. The old way to root was through a security exploit in the radio. That exploit has been patched.
If you have not updated your phone yet DON'T! Simply root your phone over to Cyanogen. There is a chance another way to root will never be found for the dream.
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Although now i don't know how to get back to the old version now, any ideas?
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Try leaving your battery out for 20 minutes. I was told by a Rogers tech that it will force your phone to receive a network refresh(gives you your internet back!)