Now that you have a new SPL flashed, you must install a new ROM for your phone to work. Although Haykuro and Jesusfreke both have excellent ROMs, many people install Cyanogen's ROM because it supports advanced features like running apps from your SD card (Note: This requires a very fast, very reliable SD card, and even then can sometimes result in complete failure that requires a complete rebuild of your phone's software).
Cyanogen was recently involved in a legal dispute with Google over his inclusion of Google code in his mods. Google and Cyanogen appear to have come to an agreement that doesn't violate Google's intellectual property, but that results in you having to now flash your new ROM in two steps.
Because Cyanogen's ROMs are frequently updated and the exact installation procedure may change, it is a very good idea to frequently check the Cyanogen website frequently.

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To install the latest Cyanogen mod on top of the official Google Android 1.6 release, do the following:
- Download the Android 1.6 Recovery Image. The current file is signed-dream_devphone_userdebug-ota-14721.zip.
- Download Cyanogen's modifications, the current version is 4.1.999. The current version is at the bottom of the Cyanogen's website.
- Put both images in the root of your SD card.
- Re-boot into recovery mode, if you aren't already there, by pressing Power while holding down Home.
- Wipe the device using the Wipe menu selection on the recovery screen. You must wipe the phone before installing these zip files for Google's apps to work right.
- Install the recovery image first.
- Watch the installation carefully. On some phones, the installation will automatically reboot the phone. You must be ready to hold down the Home button to re-enter the recovery screen.
- Apply the cm-4.1.999-signed.zip file to the phone. These are the Cyanogen mods. If you downloaded a more recent version, apply that version.
- Reboot your phone.
You now have a rooted phone running the latest Cyanogen mod.