The one thing that every Motorola Droid owner must install after rooting their phone is SirPsychoS’s SPRecovery http://www.sholes.info/howto-install-and-update-sprecovery/
With this handy app installed, you can easily backup and restore your phone.
This make it easier for you to play with many custom cooked ROMs as you like without fear of bricking your baby.
For a full guide on how to perform a full system backup using Nandroid check out http://rootyourdroid.info/?p=241
What I am Using
Currently I am running Bugless Beauty 0.8.4 by Pete http://alldroid.org/viewtopic.php?f=309&t=1391
I can’t say enough good things about this ROM you’ll just have to try it out for yourself. The new CoverFlow music app is freaking awesome 🙂
Another one of my favorite hacks is Tasmanian_droid’s overclocking image
My Droid is currently running at 950 MHz and it’s extremely stable. The app drawer is running so much smoother and faster.
A note worth mentioning is when you’re flashing the overclocking image, MAKE SURE you unmount the system partition prior to rebooting, otherwise the changes will NOT be saved and setCPU will not show the correct clock speed on autodetect.
The ADB portion of these guides might be confusing at first but you’ll get the hang of it after a while.
Have fun customizing your droid 😛