Here is the process I went through to root and rom my incredible2
<---Go here and follow the instructions, Basically you need to download the alpharevx.zip, and the HTC Drivers. Then fill out the information form and generate the key.
2: After you have the key, unzip the alpharevx.zip and install the HTC Drivers to your computer.
3:Boot your device normally, plug USB in, charge only mode. Enable USB debugging in settings, make sure 'HTC Sync' is UNINSTALLED (on Windows).
4: you should see a black screen that starts to do it's thing. After it's finished it will ask you if you want to install a custom recovery? Y/n? make sure you put a CAPITAL Y or i've heard it won't take.
5: Now you should have S-Off, And you should have flashed your custom recovery.
6: With your phone turned off, Hold Volume Down + Power Button and keep it held until a screen with writing comes up. From there you can choose to boot into your recovery you just installed.
Your phone should boot into sp recovery and you should see options like
install from sd card
wipe cache (not the exact order)
Look at this thread and download the patch that is listed here. This patch goes onto the root of your SD card (no specified folder)
*If I were you (i did) using the volume keys scroll down to backup and restore and make a backup or your rom. That way if something happens you can resort back to that.
7: after your backup is done, go to install zip from sd card and choose the file that you downloaded (rmk_root_setup.....)
8: Also if your wanting to flash CM7 or any rom. Go to install zip from sd card and scroll to CM7 or whatever rom you want to flash. (*note* the rom has to be on your phone's sd card.
8: When finished, choose to reboot system and that's it. You are now running a custom rom.
Additional** You can now install custom kernals the same way you did with the rom, Using SetCpu or similar overclocking app, you can overclock, underclock, and profiles