Joost 39, I bought a TIM Magic less than a week ago and I had a similar problem.
If your original HTC Magic is like my TIM Magic, you can find that getting root privileges is very easy, but at the moment I suggest not to flash any image which cannot be fastbooted.
e.g. After getting root at shell access I used flash_image to flash the recovery-new.img. I lost a bootable recovery partition, I didn't make a dump of it (very stupid...), so no way to reboot in recovery mode.
I now found a way to recover my original recovery partition and to start a special recovery-new.img (Haykuro's based).
I didn't have enough time to test flashing my special image and I'm not sure it will work for you. I'm sorry I'm short on time to help you right now, but if you don't get any helpful answer in the next hours, I'll get in touch.
In the meanwhile, please verify if you can have root access simply by installing a terminal on device (like better terminal) and issuing su command.
Or maybe with "adb shell", then "su".
Verify uid and gid of su user issuing the command "id".
If positive, you could dump your recovery and boot partitions and maybe (maybe, I'm not sure) I can generate a working recovery with nandroid for you (and a boot.img with full root access too).
Maybe you get help from more experienced users, remember it's my first android device and I spent on it only a few hours since I bought it a week ago (Yes, it's a disclaimer ;-))
Bye