After Rooting and Unlocking NAND (S-OFF) with unrEVOked3 which defaults with the unrEVOked Forever option. This saves an entire step and is a 1-Click root with the exception of Windows users who must first load the HBOOT Drivers. Next download the ClockworkMod Recovery ROM Manager from the market and install it as a superuser. At this point don't panic because if you have Android 2.2, Boot 0.92, and the SLCD Screen it will be BLACK w/White bars on the sides in Recovery Mode. The recovery options are working and available under the BLACK SCREEN. These are the instructions to fix the video screen and remove the Black Screen. Here you go enjoy your custom ROM's!!!
Q: I rooted and now I only see a black screen with white bars in recovery mode?
There is an issue with the Android 2.2,Boot 0.92, the SLCD Screen and the "Recovery" option. Our friend Adrynalyne has made his super scroll recovery that supports the new DInc's with the SLCD screen. As long as you have S-OFF you can flash this through HBOOT and carry on about your happy hacking ways. Download this file
http://dougpiston.com/files/Recovery/PB31IMG_cwm_mod.zip
MD5: 0C000258F92D981861BADAA42D09E922
Make sure your your Micro SDHC Card is formatted to FAT32.(Backup and Format if needed) Rename the file PB31IMG.zip and put on the root of SDHC card. (Root means not in any folders)
Boot into HBOOT by powering down the device and power it back up by pressing the Vol Down and Power at the same time. The phone will ask you if you want to update Recovery? Toggle the Vol Up to select "Yes". After it is finished it will ask you if you want to Reboot? Toggle the Vol Up to select "Yes".
Promptly connect your phone to the computer and access the SDHC Card and remove the PB31IMG.zip file. Exit out and backup your ROM with the nandroid backup through ClockworkMod ROM Manager. You have successfully saved yourself from owning a $600 paperweight.
What's that you say? You don't want to use HBOOT? Fine then. Simply extract the file above. Open unrEVOked3 with the phone unpluged and select File>Custom Recovery. Then select the recovery.img from the extracted zip. Plug in your phone, enable usb debugging and run the root tool.
All credit for this file goes to Adrynalyne and Doug Piston for his post. Thanks!!!