1. download open recovery files. i recommend getting the GOT latest version here -
http://www.multiupload.com/ORHI6UI34W2. in the zip file there will be 1 folder (openRecovery) and 1 zip (update.zip)
3. copy both files into your root sd card.
4. power off the phone.
5. press camera shutter + power button. when moto logo comes up release the power button but keep pressing the camera shutter button, until you see the triangle image with an exclamation mark, release the camera button.
6. press volume up key then press the camera button. this will give you a menu.
7. use the directional pad left or right to navigate thru the menu. select apply update.zip then press the center button on the pad.
8. it will load the files needed until you are presented with this menu -
http://groupoften.files.wordpress.com/2010/06/1_main.png9. choose nandroid menu then you will be presented with options for backup (system, data, all) or restore.
there are other interesting stuff in other menus, but be careful not to install them without knowing what they are for.