You can do it all. Wireless or Wired tether, Overclock for speed. The sky is the limit when it comes to the Droid. I will do my best to help you understand the terminology a little better.
Root is a special user account used for system administration. That's the basic definition. You can search the forums or check out Wiki for a more detailed definition. The only thing you really need to understand is that Root allows you to load custom ROMS and use apps that require Superuser permissions such as Titanium Backup.
Overclocking involves changing your smartphones hardware settings to work at a faster speed than the manufacturer's rating. The Droid is underclocked to 550 mhz. It can be safely overclocked to 1 ghz as far as I know. People have overclocked to processor melting speeds like 1.3 ghz. You will need to find the one the works best for the rom that you choose. Some roms have built-in custom kernels which makes overclocking super easy. If you decide to overclock, buy the app Setcpu. It allows you to create profiles that allow you to control your phone's speed.
Rooting is the first step. Loading a custom recovery that will allow you to install custom roms, backup your current rom so you can test other roms without having to reinstall all of your apps and countless other things is step 2. Check the links for the information needed to do both.
http://androidforums.com/droid-all-...oid-without-rsd-lite-up-including-frg83d.html
http://androidforums.com/droid-all-things-root/141116-guide-rooting-2-2-windows-linux.html
http://androidforums.com/motorola-d...d-guide-updated-5-18pm-cst-dec-07-2010-a.html
I used RSD Lite, but had a few minor problems that went away when I loaded a custom rom. I thought it was easy, however the author of Link 1 and 2 suggests rooting without RSD. I agree.
Also, rooting will, not may, take a bit of time. Relax and enjoy. It really is a fun experience.
You may be tempted to use rooting apps that are on the market. People say they work, other people say they don't. I used Easy Root with no luck. You can take your chances if you please.
As a side note, there are 2 different custom recoveries: SP Recovery and Clockwork Recovery. I have SP Recovery. SPR is very basic. Not many options. Clockwork has a lot of options and works with the ROM Manager app. Clockwork is also a little trickier to install then SPR in my opinion.
Once you get past rooting your Droid, you can backup World at War. Titanium my backup the whole game. I'm also not sure.
The next step is a little more time consuming.
Check out roms. Look at their feature set. Try them out. Here are the some links.
http://androidforums.com/custom-roms/
http://www.droidforums.net/forum/custom-roms/
Some people swear by one while others just jump from one to the other at the drop of a hat.
One thing to keep in mind is that certain roms require you to wipe your phone meaning clear all the data. That option is in the recovery mode. However, other roms want you to try to install the rom over your current rom. That may solve your backup dilemma if you chose to go that root (lol).
CyanogenMOD, Ultimate Droid, Simply Stunning and Bugless Beast are the ones I have used. In the end, I'm sticking with Simply Stunning because it was fast even before I overclocked. I love the fact that I can change the colors of the status bar and the stuff in it without rebooting the phone. The newest version of SS has Wired and wireless tether already installed. No need to look for the .apk's.
Hope this information helps.