Motorola Droid is a brand-new phone today. Like many smartphones before it, the Droid has been rooted so that owners of the Android 2.0-based smartphone can install multitouch support (including pinch-to-zoom gestures), enhanced themes and other previously forbidden goodies. A hacked Droid would allow you to modify the operating system any way you want, and add functions to the device that may have been previously restricted.
Here are the instructions posted by AllDroid Forum Member
Download the zip file from here
Rename to “update.zip” and copy to the sdcard
Power off the DROID and power back on while holding the X key
When you see a “/!\” symbol, press both vol+ and camera
Use the onscreen menu to install update.zip
Once installed you will be able to run “su” from your adb shell.
