2.1 leak means that it was the unofficial 2.1 update from HTC.
It was leaked out and people flashed it to there phone and ran it before the official 2.1 Over the Air update was released.
Root basically puts you in control of everything your phone does. Rooting the phone allows you to choose which rom you want to run, it allows you to overclock the processor so that there isn't as much lag, allows Wi-Fi tether, ect.
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