Today, the Gingerbread version of the most popular custom ROM CyanogenMod 7, has been released after four release candidates. According to the CyanogenMod blog, a few features from Froyo-based CM6 have not yet been implemented in this version, but they are on track to be included with 7.1.
If you are not aware what cyanogenmod is, it is a custom ROM available for many android devices. Cyanogenmod features many cool options not available in stock ROM. The DSP equalizer and custom themes are certainly great. And with the latest release, it brings the goodness of latest android 2.3.
According to cyanogen, the most recommended method to install cyanogenmod is via ROM manager. You are recommended to do a full backup of your apps and personal data with titanium backup and other utilities and to a factory reset before installing, even if upgrading from cm6.
For more details check out the cyanogenmod blog