I rooted my Droid, but was having an issue doing a Nandroid backup. I kept getting this error:
E:can't open /cache/recovery/command
So, after I did some searching, I found this site:
http://rootyourdroid.info/?p=70
It has some really great guides with pictures every step of the way.
(Sorry for all of the edits, I was trying to link an image from my Picasa album)