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allright, rooted droid, now want to update to 2.1. do i need to use nandroid first, and if so, what is the best and easiest way?
definitely do a backup first

boot to recovery
follow prompt to preform backup (this is provided you used droid root helper)
reboot
copy backup file in nandroid folder to a safe place, like your hard drive
that's it

basically follow the same directions to restore
just make sure that backup file is in the nandroid folder on your sd card before you do
 
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Well those are the same files I just used on my co workers droid to root it and flash a new rom so your missing something or not looking in the right spot. We even have a guide here in the how to forum with all the stuff you need. All the files are from december cause that is when we figured out how to root it, no new files have been made for rooting since then. Find su.zip and rename it to update (or update.zip if your showing file extensions) and put it on your sdcard then reboot into recovery and select apply update.zip, reboot your phone and get droidroothelper from the market and follow the directions for whatever you want to do. Now if you do this right and don't mess up then you will have root and a custom recovery that lets you flash roms and make nandroid backups.
 
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