I got a Motorola Milestone last month and I absolutely love it. The one thing that has been lacking however is root, which all changed a few hours ago thanks to this thread on German Android forum android-hilfe.de.

Here are the instructions in English.

Use these following instructions at your own risk. It is your own fault if you kill your phone and I accept no responsibility. This worked for my 2.0 UK Motorola Milestone.

1. Download milestone_root.zip from any of the following mirrors.
   • http://www.sera-apps.de/milestone_root.zip
   • http://rapidshare.de/files/49019165/milestone_root.zip
2. Rename the file to "update.zip".
3. Copy update.zip to the root of your memory card.
4. Power up the phone holding power and the camera button until an exclamation mark "!" inside a triangle appears.
5. Hold volume up and the camera button until a menu appears.
6. Run update.zip.

Your phone should now be rooted :)