I COMMITTED.... couldn't help myself - first try is BB 0.4
in process right now of restoring data + apps from MBP as the ROM took fine it seems
once I get apps + data squared away and all set and working, I will do SetCPU to 800 mhz and then kick back and check out Froyo's new features and decide what I want to do for a kernel to push the 1ghz+ barrier
Here's my advice on overclocking. You really will only need to go through this longer process once, but it's a good idea to get a feel for what your phone does and does not like.
First of all, start with a kernel. I recommend Chevy's, but JDFLG and P3Droid both have great kernels as well. Chevy's have always just been more stable for me.
First, make a (nandroid) backup of your current setup. Then install the lowest voltage kernel possible. ULV is ultra low voltage. You ideally want to run at the lowest voltage your phone will accept to retain battery life and keep heat to a minimum.
I would try a ULV 1000MHz first. If you have SetCPU, go into it and set the maximum to 1000. You may want to set some profiles for when the screen is off - that is lower the maximum speed to 400 or so - again to retain battery. Use the phone for a little while to see if it is stable. If you get random reboots, or if the phone boot loops after installing the kernel, then your phone does not like ULV at that speed.
From here, you can do two things. You can either lower the speed of the kernel in SetCPU, download a lower maximum speed ULV kernel, or try a LV kernel. The voltage is a bit higher on LV, so it's more likely to be stable at the same speed. Try the same speed again, but with LV instead of ULV. Flash it over the old kernel and see if it's stable.
Basically, rinse and repeat with different speeds and voltages until you find a combination you're happy with. From my experience, MOST Droid's are stable with a ULV at a minimum of 800Mhz, and MOST are stable LV at around 1000. If you get into the 1100-1200 range, some phones will hate the lower voltage and require a medium kernel.
You'll just have to find a balance that you like. Be careful - you may get addicted to increasing the speed when you see how much more awesome the phone gets
. A few months back I was "happy" with 800. I'm up to 1200 now. I just can't stop.
Also, if you don't want to do all the testing, mix and matching, you can just start off with a LV of modest speed like 1000. It will almost definitely work. Or you can just go straight for medium voltage which should almost certainly be stable at any speed your Droid will take.
I know this was a lot of rambling, but I hope it gives you a general idea of what to look for when you're overclocking.
Oh ya - don't wipe anything when you install a kernel, but make sure you have one stable nandroid backup first. You can flash kernel over kernel as many times as you want without wiping anything too, so you don't necessarily have to restore a backup if one doesn't work. Just boot into recovery and install a different kernel.