If you are on 2.2 now, you need to downgrade to 2.1 to root it.
Once on 2.1, Unrevoked 3 is one method to root your phone.
Unrevoked Forever will let you flash any rom you like, even if you were to accept an OTA upgrade.
Once on 2.1 and rooted if you want 2.2 + wifi tether (needs root), you need to first flash a rooted 2.2 ROM and then install the wifi tether application.
This is exactly what I did on my phone. Downgraded to 2.1, rooted with Unrevoked3, installed Unrevoked Forver, flashed a Rooted stock 2.2 ROM, installed Wifi tether. It works great
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This is the rom I used:
HTC OTA Froyo 2.2, *FINAL*, build 3.36.651.6 (Rooted) Odexed - xda-developers