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Instant Root - fails to gain access (Droid 2.0.1)

I am a new Motorola Droid user. My phone came with 2.0.1 installed. I installed Instant Root 1.04 and attempted to run it but got a message "unble to gain access".
I started down this road because I wanted to backup my phone so I could do a hard reset. So installed "Titanium Backup". It wouldn't run because my rom wasnt rooted. So i have spend 4 hours researching and each item i find leads me to another issue or program to install. Most everything seems to involve rooting.

One question I have is if there is a difference between 2.0.1 preinstalled an 2.0.1 ota?

For background I wanted to reset the phone because none of the 3rd party contact or phone dialing packages will read the native phone list or contacts.

I owned a Omnia i910 and did a considerable amount of customization on it to I am reasonably familiar with digging around in the guts for a general user.

Would appreciate any suggestions for any of these issues.
Thanks
Tom
 

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