I used it on my DX (v1.3); it didn't work the first time, but then I clicked the "unroot" button to clear the reminants of my pre-update root (rebooted) and it worked perfect on the second root attempt. If it gives you the option to unroot, give it a try.
And if this still doesn't work, try plugging your phone into a PC. For whatever reason, another member here said that did the trick for him. I don't remember who though...
The is a total hassle, having suffered through the same thing. I ultimately had to reflash the phone to .320, update to .340 and then root. But, I did learn about the phone.
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