Try this out
Rooted Android with WiFi tethering | The Clever Engineer
MAKE SURE YOU BACKUP before you try anything
(The following is taken directly from that website, and you MUST start with a rooted droid)
From The Clever Engineer:
So let’s get started:
1) We need to download some files first:
a) SuperUser Update File:
http://alldroid.org/download/file.php?id=659
b) Droid Rooting Tools:
http://www.filefactory.com/file/a176c22/n/droid_root_helper.zip
c) Restore Image:
http://drop.io/tbzq4oj/asset/bcdmrs-20091226-2109-zip
2) Now you need to connect your phone to your computer using the included USB cable. Then pull down the notification screen and click “Mount”. The SD card should now show up like another hard drive in your My Computer screen.Now put the droid-superuser_update.zip file onto the root of your SD card for the phone. Then rename it to “update.zip”
3) Restart your phone into Recovery mode . This is done by holding down your power button and then turning off your phone (if it’s on). Once it is all the way powered off, then hold down the power button and the X key on the physical keyboard at the same time until your see the Motorola symbol come up. Once you see the caution symbol, then hold down the camera button (lower right corner of phone) and also the Volume up button (upper right corner of phone) together. You will then see the Recovery console.
4) Click on Apply update.zip
5) Once done, reboot your phone into normal mode.
6) Now we need to get a certain app from the market called ApkInstaller. So head on over to the marketplace and search for “Apk”. Then click to install Apkinstaller once you find it.
7) From 1b, you should have downloaded a file called droid-root-helper. Unzip this file to the phone’s SD card using the same process as the super user file that we put on there. So on your phone’s SD root directory you should have a file called DroidRootHelper.apk and also a folder named Tools. This is crucial to the steps following this one.
8) Once this is on your phone unplug the USB cord from your phone. This is because APKinstaller errors out when connected to your computer. Regardless, load up APKinstaller that you got from the marketplace and then install DroidRootHelper.apk. Sorry, one more thing, you must allow third party applications from Settings->Applications and then check “unknown sources”.
9)Once DroidRootHelper is installed, open up the program click on the following buttons in order:
Mount System 3
Mount System4
Rename Recovery
Install Busybox
Install Flash Image
Flash SirPsycoS’s recovery
Reboot Recovery
10) Once your phone as been rebooted to the recovery mode (this should be done by clicking “Reboot Recovery”
. Select the Nandroid submenu, and choose the “Default Nandroid Backup” option. This will create a folder name something like “BCDMRS-20091230-2116″ inside the nandroid folder on the root of your SD card.
10a) This backup folder needs to be copied off of the SD card onto your computer. Save this folder as that is the backup of your system. DO NOT DELETE THIS FOLDER. Just MOVE it to your computer. Make sure you get it off the SD card.
11) Next take the zip file from 1c and unzip it. Please the resulting folder “bcdmrs-20091226-2109″ inside of the NANDROID folder on the SD card. So in other words it should be: SD Card\Nandroid\bcdmrs-20091226-2109
12) Now reboot into recovery mode again.
13) Click on Backup/Restore. Then click on Simple Nandroid restore (latest).