great write up. not new to rooting at all,but very new to NC

i just picked one up thats running cm7 from the sd card. looks like the device itself is not rooted.
just to make sure i understand this correctly,if i make a bootable CWM SD,roms i flash from it will be flashed and run from internal memory,correct? can i immeidately make a backup of stock,unrooted firmware if i need that for later?
once ive flashed a rooted rom,or rooted the stock 1.3 firmware the manualnooter way,i could then flash CWM to the internal memory correct and keep the sd card CW for emergencies?
thanks again for the awsome guide,ill definately be doing this later,as cm7 from the sd seems a lil laggy and not everything works correctly. hopefully installing it on the internal memory(like im used to with my phones) is better.