Well I don't know whats going on with my phone but it seems to be stuck!
I rooted my phone using z4root and lad fixed with OCLF fix before I upgraded to 2.2.1, when I did this I cleared all settings and apps from my phone.
Now I or the phone don't seem to know what its doing, I cannot re-root using z4root as it crashes and OCLF still thinks I need to root, when I do this it says I need to select "apply sdcard..." at recovery but when I do this I get the "E: signiture verification" that occurs when you try to root at handset on 2.2+.
Looks like I am stuck at this point on my phone now, have tried putting Darkys zip file on my internal sd (don't need to rename this do I?) but still no joy, just comes up E:failed to open /mnt/internal_sd/update.zip (no such file or directory).