This has been going around for the last few weeks among the Android/Security/Privacy community and I thought I'd just share: http://www.wired.com/threatlevel/2011/11/secret-software-logging-video It includes Part 2 of the Carrier IQ video by an Android Developer who discovered it. It turns out that ,despite the claims of the company that produces the analytics software for mobiles, the software collects keystrokes and logs encrypted searches etc. I'm glad to be on a custom rom.
The Always Up to Date Guide to Rooting your Phone from Lifehacker: http://lifehacker.com/5789397/the-always-up to date-guide-to-rooting-any-android-phone
Carrier IQ Detection Available on Android: https://market.android.com/details?id=com.lookout.carrieriqdetector