I , too, am running CM7 on my N1. For those you want 2.3 and are rooted, here are the steps (I'm not responsible for you messing your device up or you didn't backup before wipe):
1) Go to
http://phones.crackflashers.com/passion
2) Download gingerbread-gapps-12302010.zip, d6096cac5e9f.signed-hboot-0.35.0017.zip, B#45-passion-cm7src-grid-eng.zip (Gaaps, hboot, cm7 build)
3) Move the three to /mnt/sdcard
4) Reboot into recovery, wipe delvik cache, cache, data (if you don't know how, stop here and disregard this post)
5) Install from zip - d6096cac5e9f.signed-hboot-0.35.0017.zip
6) Reboot into recovery and install the other two from zip (build and gapps)
7) Reboot, enjoy