Alright. We're going to try restoring (replacing) recovery so we can flash that ROM.
And as it turns out we'll need to use RSD Lite as it's quite simply the easiest way to do this assuming you have a PC running Windows.
http://www.droidforums.net/forum/droid-labs/73579-using-rsd-lite-flash-sbf-file-correctly.html
http://www.droidforums.net/forum/droid-labs/74028-root-droid-1-regardless-os-version.html
The first one will tell you
how to do it right, the second one will set you up with and SPRecovery. SPRecovery will allow you to flash your ROM, or just do a factory reset and see if you can boot normally -- but you'll still be missing all your apps, texts, etc.
What you'll need to do if the factory reset fails is install a stock, rooted FRG22D ROM if you want to go back to where you were. If you never wish to theme it then you'll want an odex version. However, deodex will run just as well and is probably easier to find. Also, since you've already lost everything, you might consider a custom ROM.
I will provide a link to a stock, rooted, deodexed ROM for your convenience. As you will note, there are themes for this ROM, along with links to overclocking kernels.
http://www.droidforums.net/forum/metickone/77777-metickmod-frg22d-froyo-2-2-updated-12-05-10-a.html
If you are interested in a custom ROM then consider looking into a few before you do the final flash. Some to look at (but not recommended by me unless directly asked for
one ROM, in which case I will respond) are CyanogenMod 6.1 which was released last night, Ultimate Droid which supposedly will be having 2.4.0 drop soon, Simply Stunning 4.9, Sapphire 1.1.1, and Charity ROM.