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answers:

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I'm thinking of doing some work in the Android space and was looking at the Verizon Motorola Droid. My question is simple: Can/How do I directly deploy applications I am developing and testing to my personal phone or I limited by some other third party as to how I can access my own phone?

+6  A: 

You compile your programs to .apk files, which you can upload directly to your phone. You can even plug in your phone by usb and debug your code on it, instead of using the emulator.

If you want to make your applications available for the rest of the world, you have to upload them to the Android market, which incurs a one time $25 registration fee for developers.

David Hedlund
One note, you can make apps available to anyone through alternate app stores, or by providing the apk. The user will just need to set the config to allow allow unknown sources.
broschb
One other note: You cannot sell your applications through the market if you are not from a a country supported by Google checkout. Like Canada. They take your 25 dollars, and they take your free apps. They give nothing. Regards, Ari
BeMeCollective
@BeMeCollective is correct, but T-Mobile has announced plans to support carrier billing for Market purchases, at which point that situation may change.
Klondike