Uhh try the "old school" method...
Download the rooted update.zip to your sdcard (root of it, preferably)
Flash SPRecovery using RSDLite
Boot into SPRecovery and install the update.zip you downloaded
Reboot normally and then you'll be rooted... except I flashed the FroYo SBF thennnn SPRecovery and thennnn did a nandroid restore, and I didn't need to install the rooted update.zip (because I had to flash back to the stock ROM for something and had rooted ROM backups and 2 nandroid backups) so yeah. Its good

That's really weird how everything FC'd... maybe the permissions needed to be fixed.
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