After rooting my Galaxy S2 with Doomlord's Rooting Toolkit I pulled out my N1 to see if it would work and it did! Within 30secs I was fully rooted.
My N1 was running 2.3.6 stock till now and I didn't want to wipe to be able to root and this is the way.
I know I had been waiting a long time for this so maybe it'll be useful to others.
Doomlord's Rooting Toolkit: http://forum.xda-developers.com/show....php?t=1319653
Zergrush Exploit: http://forum.xda-developers.com/show....php?t=1296916
Update: Note that several manufacturers have patched their firmware to make this exploit fail. I don't know if this still works for the N1 though I believe it should considering I haven't seen an update come out for it (could've missed it) So if it fails for you and you got a very recent firmware could be google fixed it.