From ModMyGPhone Wiki
This guide works for RC8 and Dev Phone 1 as well.
RC30 is US firmware, RC8 is UK specific firmware, both are interchangeable.
Requirements:
1. Modded recovery.img file. Get it here,
2. Modded RC30 or Modded RC8 (current version: 1.3.1)
So, download the modded RC30/RC8 zip archive, rename it "update" and copy it to SD Card.
Note: Dev Phone 1 users should just download the modded RC30/RC8 zip and do the update, no need to flash the recovery.img file, you can skip those steps.
Steps ::
1. Unzip AndroidMod.zip and copy recovery_testkeys.img to /data/local/recovery.img using adb.
adb push recovery_testkeys.img /data/local/recovery.img
If you prefer telnet or don't have adb configured, copy that img file to SD Card and detach the USB cable.
Note: The commands below have to be entered through the adb shell if you are using that or through telnet on your computer.
Make sure you mount /system as read/write before proceeding,
mount -o rw,remount -t yaffs2 /dev/block/mtdblock3 /system
2. Copy the img file from SD Card or /data/local to /system
If you used adb do,
cd /system
cat /data/local/recovery.img > recovery.img
or if you copied the img file to sd card then do,
cd /system
cat /sdcard/recovery_testkeys.img > recovery.img
3. And finally flash the image,
flash_image recovery recovery.img
Turn off the phone and start into recovery mode by pressing and holding HOME + POWER button while booting. Once in recovery mode( exclamation mark..), press ALT+L and check if you see Using test keys, if yes then the flash was successful.
The hard part is over. Now press ALT + S to do the update. It will take a while, so relax. Once completed, phone will reboot couple of times then startup normally.
Thats it !
This guide borrows from the content posted here and here.