Ok thats good you have the new baseband so you are half way there. If you are still haveing problems with service I dont know what else you might be in a bad area. You can absolutly root this version it is actually easier than ever before. I am going to give you links so you can follow along and watch videos also. So here are the steps:
1. NVFLASH clockworkmod this is the hardest step here is the link to the developers page with simple instructions. Dont worry about rooting first that was under the 2.2.2 method this was step 2 now it is step 1. He has it laid out really simple. I think you have to have a PC for this I'm not positive though but I know it went smoth for me. There is a link to the video at the bottom of the page so read the instructions and watch the video then give it a shot.
[RECOVERY][APP]Update 6-16: One-Click ClockworkMod 4.0.0.2 NvFlasher - xda-developers
2 - Download Xboarders Rooted OTA.zip this is completly stock gingerbread except with root permissions.
Gingerbread OTA 2.3.3 Rooted flashable zip v1.0.0 - xda-developers
3 - boot into clockworkmod and flash the file that you downloaded
And tthere you have it you are rooted with stock GB and the new baseband.
Once you do that you can flash anyROM that is pre rooted from there most are pre rooted but for this I want you to use the stock GB so you dont change you phone too much. Once you are comfortable then we will flash the stock froyo LG camera and some other tweeks.
Take it slow watch the video a few times make sure you are comfortable print out the instructions from the clockworkmod dev page follow them to a T and you will be fine. Let me know how it goes and after that I will give you a link to where you can get more ROMS. Just so you know I get all my info from xdadevelopers.com I have only had an android phone for a few months and I taught myself from what I read on the forums here and xda so if I can do it anyone can.
GOOD LUCK,
Charlie