just follow this to the letter and you'll be fine, its the method i used, and its fairly simple, http://androidforums.com/optimus-v-all-things-root/380801-guide-rooting-without-computer.html
i was a little skeptical at first too, but i was then directed to this by another user, and now im enjoying BACKside CM7.

 

It sometimes takes a couple 2-3 tries but it is the safest and best for the "V" right now. It will not mess up your phone,even if it doesn't work the first couple of times.

 

I was "skeptical" for 6 months. Rooted with Gingerbreak method a couple weeks ago, no problems at all. Frees up a lot of space once you use link2SD. I personally don't see any advantages other than more space (which is all I wanted). My OV ran smooth without root, and runs smooth with root. I don't play many games, so all the ROMs and overclocking really are of no interest to me.

 

Rooted last night, Using gingerbreak. Phone still working fine. Only mistake I made was I had to format my Sd Card beforehand, (I forgot that I had my music on it.) and that deleted my music. Luckily most of it is backed up on my laptop.

I did not download busybox.
But like I said everything is still working.
So that hopefully answers your last question.
I'm a noob so now I'm just trying to find out what what Rom to get.