Ding, ding ding!
This morning, since I now have a working backup from nandroid, I got a little braver and wiped everything in SPRecovery before applying the update and it worked like a charm. I'm now on to trying to OC the kernel to 1 GHz. I can already tell that the downside to rooting is that the tinkering is neverending (by choice).
Congrats on getting it working. I have the same problem, I can stop tinkering with the phone.... make sure you download Titanium Backup from the market.. that will allow you to backup all you apps and your apps individual settings and such and restore it after a data wipe (which you will do quite often while "accidently tinkering" lol)
Enjoy your rooted droid
Btw I'm not allow to have unsupervised visits with my wifes rooted droid... :-( she's still on BBv.8 and the old baseband for goodness sakes
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