1. Install Android Explorer
2. Download Pete's Motorola Root Tool
http://dl.dropbox.com/u/6643359/Soft...ools_v1.07.zip It's a zip file so you will have to extract it to a folder.
3. On your phone, go to Settings-Applications-Development, and check the box for "USB debugging".
4. Connect your phone to your computer with usb cable and choose the "Charge Only" mode.
5. Navigate to the "Pete's Motorola Root Tool.exe" file that you downloaded and extract earlier, and double click on it to open the one click root tool.
6. Press the button to root or unroot your phone and follow the onscreen instructions. Your phone will automatically reboot a few times during the procedure and then it will be done.
It's that easy. Good luck.