Oh shiny toys! I have seriously been jonesing for the Android 2.1 rom for Sprint's HTC Hero to drop, only to be disappointed a couple of times. Up until now I had not considered rooting my phone, but some of the Lag issues and multi-tasking bog down was getting to me.
I read that Damagecontrol had dropped 2.1 for some of the older models so I went looking and found this androidpolice article about updating his phone. I followed the links that where in his article and am no rocking the DamageControlv2.07.2 rom without a hitch thus far.
The first step is to root the phone follow the instructions they are very clear.
The next step is to backup, androidpolice article worked very well for my Hero.
Finally get the Rom you want to install, DamageControlv2.07.2 link from xda-develop forum, copy that zip folder onto the sd card of your Hero, fire up Clockwork again and choose to restore from the Rom you just copied to your sd card and about 15ish minutes later, you get to setup your phone just like its new.
I would just link to the Androidpolice article and call it good, but the last step wasn't specifically written out anywhere, and I didn't know that the Rom needed to stay zipped to restore it.