Motorola Droid has been rooted for direct access to the file system successfully on Android 2.0 Rom & Android 2.0.1 OTA firmware. The exploit provides a /system/bin/su from AOSP (that is, you can only use it from adb shell). Once you get the root access, you can modify the phone’s firmware and install third party apps, themes and custom Roms. With a rooted droid phone, you can also tether your Android device to your computer to gain internet access.
Steps to Root Droid phone on Verizon
Step 1: Download the file for Android 2.0.1 OTA update for Motorola Droid from here.
Step 2: Rename the .zip file to “update.zip”
Step 3: Copy “update.zip” to the SD Card on your phone.
Step 4: Power off the DROID and power back on while holding the X key.
Step 5: When you see a “/!\” symbol, press both vol+ and camera.
Step 6: Use onscreen menu to install “update.zip” file.
Step 7: Reboot your Droid phone. You will be able to run “su” from your adb shell.
Please free to ask questions if you are not able to root your DROID phone running on Android 2.0 Rom & Android 2.0.1 OTA firmware.