Just finished downloading with rooted one-click phone, not running the lag fix though, and everything seems fine so far. You can definitely get the update with a rooted phone, if there any issues updating because of it I guess I'll soon find that out.
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Oki everything went fine, it was taking forever to boot up after restarting, I started to worry but it eventually did and told I successfully updated. I'm still rooted and was able to take a screenshot no problem (the only real use I have for rooting right now). I hope this means Froyo won't be an issue when that update rolls around. I haven't checked the GPS yet but not that worried, I don't even need such exacting GPS personally.