01 - Plug your phone into your USB port and choose mount USB storage from your status bar.
02 - Copy the required files (flash_image binary and recoveryX.XX.X.img X.XX.X will be the numbers of the current build of the recovery img).
03 - Rename recoveryX.XX.X.img to recovery.img (this makes thigs easier later).
04 - Unmount your SD card from your status bar and unplug your USB cord.
05 - Fire up Terminal Emulator you downloaded from market place (or you can adb).
06 - Type su                                                            - To get a Super User prompt (#).
07 - Type mount -o remount,rw -t yaffs2 /dev/block/mtdblock3 /system    - This makes /system writable.
08 - Type mkdir /system/xbin                                            - If it already exists you will simply get an error.
09 - Type cd /system/xbin                                               - This will change your directory to where the flash_image copy will go.
10 - Type cat /sdcard/flash_image > flash_image                         - This will copy flash_image to a place where you can execute it.
11 - Type chmod 700 flash_image                                         - This will make flash_image executable.
12 - Type sync                                                          - Flush changes to block device.
13 - Type mount -o remount,ro -t yaffs2 /dev/block/mtdblock3 /system    - Remount in read-only - you shouldn't need to make any more changes.
14 - Type flash_image recovery /sdcard/recovery.img                     - This does the actual business of flashing your recovery partition (gulp) should only take 2 seconds
15 - Hold down the power button for a few seconds and choose "Power Off"
16 - Hold x and hold the power button until you see the Motorola logo.
17 - You should be greeted by the custom recovery firmware.  Choose reboot and wait for the first set of custom roms!