lol. you people crack me up. There is a reason the manuf. clocked it where it's at.. back in the day of single core processors I've seen 2GHz processors OC'd to 4 GHz.... just because it's possible doesn't mean it's a good friggin' idea! hell u can drive your car with your feet if you WANT to... but again doesn't make it a good idea!
HEAT and electronics don't mix. however. electronics generate heat. they need to be kept cool. by OC'ing your droid to over 2x it's processing power you're increasing it's heat out put by atleast 2x.. i don't care what the processor is rated for. what is the cooling system of the phone rated for?
Also I take it you're not too familiar with the PS3 and Xbox 360 gaming systems, no? PS3 in its early release had an issue dubbed the YLoD. Yellow Light of Death. not nearly as common as the RRoD (Red Ring of Death) on the Xbox. but its the same problem. basically Sony fixed the problem a long time ago, microsoft is still scratching their heads on it. Oh yeah. the problem. The GPU in these wonderful devices are soldered chipsets to the board. they use lead free solder. which is very brittle, and can break easy from flex. what causes flex? expansion and contraction. what causes that? heat. so why don't they use lead based solder? well thank our wonderful gov't placing stupid regulations on things because the average consumer refuses to read labels and warnings and still gets all sue happy and somehow wins (i guess our justice system is a bit of play here too) but that's a whole 'nother topic. so they have to find a way to create less heat. I don't know how Sony did it but they YLoD is a non issue now. However Xbox still has the dreadful RRoD. How does this have anything to do with our phones? again lead free solder. the manufacturer only makes a board and chipset able to withstand normal usage to keep down on costs.
so just because it's been 'working' for 3 months no problem doesn't mean it's not still happening. You're extremely shortening your device's TTL. but if that's what you want to do, by all means go for it. but there is a reason the device is only clocked at 550MHz from the factory. (I believe that is the correct clock speed for a Moto Droid). Even if the Inc isn't able to handle the heat from the 1GHz processor. guess what I got that you don't? Factory warranty. So take it for what it's worth. It's like buying a 4 banger and putting a turbo and nitrous on it to keep up with a corvette.... ok cool but the vette still has a factory warranty.