You can now have root access on your OTA RC30/RC8 phones.

If you have RC30/RC8 or later, you must FIRST flash your phone to RC29/RC7 or lower to be able to exploit root access using the following steps. RC29 and lower users can skip this section.

1. Format the SD card to FAT32 mode (this is sometimes needed. The image is not always found if other files are on the sd card).
2. Unzip the RC29 or RC7 image file DREAIMG.nbh to the SD card. (RC29 for US, RC7 is for UK)
3. Turn the device power off and insert SD card.
4. Hold Camera button, and press Power button to entry bootloader mode.
5. Press Power button to start upgrade procedure.
6. After it finishes, reboot.

Follow these steps once you have RC29/RC7:
On your G1, anything you type into your keyboard is also being run in a hidden console with root permissions. But, to get root access, do the following:


1. Restart your phone
2. Type telnetd and press enter - Yes, it will start up a Contact search, do not worry about this, just type telnetd and press enter (the enter button on the keypad).
3. Download an Android Telnet client (I have one on the Market) and connect to localhost.
4. you now have root!

thanks to living sowrd and koush