Well, there are lots of directions and ways to get rooted (and instructions for doing each).
Reading between the lines and per the gist of your thread, it sounds like you are running out of space on your phone for the applications that you've installed on your phone.
The downsides and dangers to rooting and installing a custom ROM only crop-up when the instructions aren't followed very carefully (and even the, its pretty hard to brick your phone).
I would think that an 8GB card would be more than enough, but I don't know what types or size of apps you are using. Maybe others out there that use a2sd and/or Froyo because they are running out of app space would be able to chime-in regarding this.
Just a quick tutorial on rooting. To get rooted on the Eris, you need to get a custom recovery partition installed. This custom recovery allows you to install (flash) either a new custom ROM (that will replace your current phone's operating system) or update-type files that just update the currently installed operating system.
So, you can root your phone as it is and just gain root/superuser access, but you can't (I don't think) get a2sd capability without flashing a custom ROM. I don't think you can install the a2sd capability on your current stock 2.1 Android setup (I've seen people ask about this and request it, but haven't seen a proper response to this).
You would need to "shop-around" (read and research) to find a custom ROM that supports a2sd. The non-Froyo (2.2-based) ROMs require that you format your /sdcard to support an extended partition. The Froyo (2.2-based) ROMs do this without making you format your /sdcard. I have not used a2sd or flashed a Froyo ROM (yet
) which explains why I answered the question about whether it automatically moves things to the /sdcard or not incorrectly. There are lots of threads and good folks (like doogald) that I'm sure can fill-in the blanks regarding this.
So, bottom line, you should take a peek around the eris-all-things-root subforum (that you are already in) and get a little more comfortable with rooting concepts. I suggest reading throught the stickied threads first.
When you are ready, there are at least three good, options for you to root and then flash your custom ROM (all discussed in this thread
http://androidforums.com/eris-all-things-root/158369-rooting-htc-eris.html):
1.
http://androidforums.com/eris-all-things-root/127861-universal-eris-root-dummies.html - this thread by erisuser1 is very detailed, thorough and guides you along with screenshots; lots of folks have used it very successfully; this method allows you to root without having to use your PC or MAC
2
http://androidforums.com/eris-all-t...is-app-apk-no-pcs-no-scripts-needed-easy.html - this thread by jcase is very quick and easy, but details are a little sparse, but its your easiest route
3.
http://androidforums.com/htc-droid-eris/125436-detailed-leak-root-tutorial.html - this thread by surgeon0214 / alprazolam walks you through rooting via the Android SDK; this is a good method if you are comfortable with the Windows Command Prompt and want to know about each step in detail (you'll learn a lot by doing this)
Hope this helps!