Install Android 2.1 on Your Droid Without Waiting

Why wait for Verizon to officially push the Android 2.1 update to your Droid when you can just download and install it on your own? The Android 2.1 update can be manually installed onto your Droid without voiding any warranties or hacking your phone at all, you’ll simply use the method that Android puts in place for such things. For the instructions and links

First, if you are comfortable with downloading files, renaming files and moving them from one folder to another, this process should be fairly easy for you.  If not, ask a friend to help you with the steps below.  These are taken from AndroidCentral with a few modifications:

1. Download the update from this link and save the ZIP file to your computer. [Download Here]
2. Rename the file to “update.zip” if it isn’t already, but be sure you don’t name it “update.zip.zip”.
3. Plug your Droid into your computer and then pull down the notification bar and Mount your microSD Card so that you can browse the microSD card on your computer, see here for more details.  Put the file in your microSD card, making sure it’s not in any folder, it should be .  You can also pull the card from the phone and you a card reader attached to your computer, but I suggest this method as it’s faster.
4. With your Droid turned off, hold down the letter “x” on the keyboard and then hold down the power button. You should soon see a triangle with an exclamation point inside.
5. Press the volume up button and the camera button at the same time. It may take a couple tries.
6. You should now be in the bootloader. Use the D-pad to choose “update from .zip file” and choose the update. Let things run their course.

At the end of the process let your phone reboot. It might take a little while the first time, but be patient and in the end Android 2.1 will be your reward.