Ok, rsdlite is the biggest pain of this whole process, as there are often driver issues. Before starting it, I would read
http://droid.koumakan.jp/wiki/SBF
I have used rsdlite 5.6 and 5.7 on windows xp, and both have worked fine.
I haven't tried with windows 7 (I use 7 64 bit, but have an xp laptop available), so someone who has will be more help there.
the recovery and root CD is what you need, and rapidshare can be a pain. But, mediafire doesn't allow files of that size, and rapidshare does. If anyone wants to upload the CD to an alternate site, I will be happy to include the link.
Regarding where to find rsdlite, it and other motorola related files are available at
http://1kds.tk/
Rsdlite is actual Motorola software (yes it is a separate utility), whereas the other files used for linux are not, so rsdlite flashes everything that is supposed to be flashed, and the linux version leaves the radio baseband out. When rsdlite goes to flash the baseband, it actually changes the phone into a different mode, needing different windows drivers. These drivers are included in the driver install files, but it seems that they often don't get installed properly. The first link I gave up above gives more info.
Hope this helps