after step 4 when i try to connect my phone it says "error: device not found" i dont get it its driving me crazy!! win 7 64bit btw. any help is very much appreciated. thank you 
Look up the definition of virus in a dictionary. To be a virus, it needs to self replicate.Yes it is and has to be some kind of virus. It's the only way to break the android's security and get root privileges.
jc-macbook:~ jc$ /android/platform-tools/adb shell
$ cd /data/local/tmp
$ chmod 0755 exploit.bin
$ ./exploit.bin
[*] CVE-2010-EASY Android local root exploit (C) 2010 by 743C
[*] checking NPROC limit ...
[+] RLIMIT_NPROC={3984, 3984}
[*] Searching for adb ...
[+] Found adb as PID 9706
[*] Spawning children. Dont type anything and wait for reset!
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[*] [email protected] so we can compensate time, effort and HW costs.
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[*] adb connection will be reset. restart adb server on desktop and re-login.
$
jc-macbook:~ jc$ /android/platform-tools/adb shell
$ mount -o rw,remount -t ext3 /dev/block/mmcblk1p21 /system
mount: Operation not permitted
Try superoneclick http://forum.xda-developers.com/showthread.php?t=913709z4root didn't worked for me, I Have USB debug On and rom is Eclair 2.1 Indian Version...