Sometimes the first method isn't always the best:
A new app has appeared on the market called "z4root". This seems to root in one click.
Details are here.
Install this from the Market, press Root and you're away.
Old Methodm should it still be required:
This requires you to have 2.1 already (either Nordic, or other generic, or using Bin4ry's flashtool version here.
instructions and files as below.
Download the SuperOneClick (files attached) or original post here
Updated Superoneclick version 1.5.4
Fixed superuser install issue
Added a prompt to tell you to allow superuser on your phone, for the test.
It can take a while to ROOT - looks as though it is stuck in a loop. I thought it wasnt working but waited about 10mins and it worked.
If you wait longer and it still doesn't work, try untick/retick USB debug while it's running
Hey Presto - ROOT !
Thanks CVCHETAN for adding the attachments & tidying it up.. it was late (:
Remember you will probably want Busybox too - click Problems from within Titanium to download.
NOTE: If you're having no luck with this, it seems the PDANet client might install different drivers which help the process. If you're struggling this might be worth a try. Also ticking Unknown Applications allows it to send the SuperUser.apk has reported to help some users.
PdaNet Client is here.
Pre-requisites not mentioned in this post:
Working 2.1 X10
Drivers must be installed for X10 Debug mode - try adb manually to check
Some virus checkers might flag these files - this is because an exploit can be a security risk, but 100% virus free
You run this all on your PC - it connects to your phone and roots it from there.