I rooted my original Motorola DROID to CyanogenMod last year sometime. It has treated me well, with a lot of cool features and apps. However, recently it has been acting up and just became very frustrating. After seeing CM7 perform on my Nook, I figured it was time to upgrade.
I went and downloaded the latest stable version of CM7 for my DROID. I renamed the file update.zip and placed it on my microSD card in the root directory. I then placed the card back into my phone and started up the ROM Manager app. I selected Install ROM from SD Card and selected update.zip.
Now here is where the issues started. I only select Wipe Dalvik Cache and pushed OK. The phone rebooted and installed the update but then got stuck on the CranogenMod loading screen. It is the picture of the Android logo on a skateboard, with an arrow circle going round and round. After about 5 minutes of this, I removed the battery.
It turns out I needed to wipe Data and Cache! So, at this point I needed to NOT boot into the new install. To do this I powered off the phone. Next I powered on the phone while holding down the X button. This booted to a menu giving me many options. I selected the option to wipe data, then selected OK. After this completed, I went ahead and installed the update.zip file again. I then rebooted, and it worked! My new install of CM7 is looking wonderful!