The InsecureSystem blog has a nice write-up on how to get Orbot running on your Droid:
I’ve always been a supporter of net privacy and Tor in particular, and a friend of mine got me interested in the guardian project, so I grabbed the beta version of Orbot just to try it out.. sweet, tor from my phone.
Unfortunately the Smoked Glass Rom I was using didn’t support the Iptables modules necessary for the transparent proxy method orbot used for tunnelling apps through privoxy/tor. So, I was forced to try out some other Roms and their respective kernels.. okay, forced is a bad way to put it, it was a lot of fun.
