HTC Hero :: Phone Only Half Rooted - ERROR - Sorry Could Not Acquire Root Privileges

With a free sunday at my disposal, i thought i would try and sort my hero out as it has become super-laggy after the OTA 2.1 update (HTC hero locked to 3UK network, previously had 1.5).

So i've been trying to read as much as i can on this and other forums and got as far as installing Universal Androot, which reported success in rooting the phone.

However have now installed (and bought PRO ver) of Titanium Backup which refuses to recognize the root. It returns:

ERROR: Sorry, I could not acquire root privileges. This application will *not* work! Please verify that your ROM is rooted and includes BusyBox, and try again.

Yet, TB is listed as 'allowed' under SuperUser Permissions. And even weirder when the error dialogue box comes up sometimes a strapline flashes briefly across the screen 'Titanium backup has been granted .. permissions'. I take it that this is Superuser informing me.

So why doesn't Titanium recognize the root? Have tried re-starting and rerunning Androot (which reports that phone is already rooted, do you still wish to proceed). It's almost as if superuser isn't giving the OK fast enough or something.

Obviously don't want to start messing around with ROMs if i can't first backup my data!