Rooted my phone the other day and flashed the Cyanogenmod 7.1 onto it. Did a few more tweaks and it's running better than ever for a first gen Moto Droid.
I've got a Nook Color running CM7 ... great setup. I'm really impressed with it. (That said, it's not nearly as stable as my iPhone is, but then my iPhone is also a factory setup, not something hacked together by the community.)