Hey man, got it done. This webpage really helped.
How To: Root the Nexus One (Updated 01.11.10) | The Unlockr
I had to play with the USB drivers a bit, if you have anyone running Widows 7 that is having issues, feel free to send them my way.
You say you had to play with the drivers a bit, what did you have to do? I've now tried to unlock the bootloader on three completely different machines(win7 64bit, Vista 32bit & XP 32bit) and fastboot-windows still will not see the phone. How does the phone show up under device manager for you? For me it says "Android Bootloader Interface" under "Android Phone". Maybe I don't have the correct drivers, even though I've updated the Android SDK.
This is really frustrating as I REALLY want to get my phone rooted so I can use Cy's ROM. I messed around for close to five hours last night a couple today and still "waiting for device".
Someone please help!!!