I also heard....
Launcher Pro
Beautiful Widgets
Better Cut
Folder Organizer
Live Wallpapers
Just a few ways to give your droid a fresh easy makeover.
Try LauncherPro as well.
Yeah, go ahead and root...if you don't mind having to wipe your phone and lose all of your application's data.
I would also advise ADW.
It doesn't require you to hack your phone.
It gives you a crazy amount of options.
Its 100% FREE!
And I have bench-marked it against the other home replacements and it is by far faster and more stable.