Yep, you read it right. HTC Desire has been rooted with HTC Sense running on Android 2.1. Paul from Modaco forums has managed to get full root user access on the device making sure you get to play with whatever files you want in the phone.
This is not first time he has rooted Android phones. Paul is widely known for his work in rooting Android devices like the HTC Hero and the Nexus One.