If you've rooted your Motorola Droid chances are that you are enjoying the results, but are concerned about the consequences if you phone updates or in any way become incapacitated since your phone manufacturer will not be pleased with what you've done to the phone. One way to ameliorate these fears is to back up your phone. This video will show you how to use Nandroid to make a backup of your rooted phone.
From the creator:
Download this file
Download DroidRootHelper and Terminal Emulator (Jack Pelvich) Both can be found FREE in the market.
Open DroidRootHelper, Click menu and download the TOOLS - Click on GET THE TOOLS
After downloadin the TOOLS from DroidRootHelper, you must extract them (becuase its a zip file) to the root of the sd card. Keep the folder named TOOLS.
Install chmod Busybox
Install chmod flash_image
Flash Recovery 99.1b
Unmount System mtdblock 4
In recovery mode create a back up file using advanced nandroid back up, Check all boxes then click perform backup, once done use power button to cycle back out, and reboot.
Update recovery to latest version- Copy Recovery-0.99.2b.img file to the ROOT of your SD card, you must be mounted via USB to do so. Now you can use Terminal Emulator to input the commands shown on my monitor, this will update you to the 99.2b.
Rename the backup file you just created, mount your phone via USB, locate your backup inside the folder called Nandroid, click on the folder that says BSD-0009879- etc... right click and rename the folder to what you are comfortable with, copy that folder to your desktop or location that you want to save it to on your computer.
Open up terminal emulator and type in commands EXACTLY like I am showing... Then reboot recovery