First of all, do not be scared to do it! It is simply a 10 minutes or at most 20 minutes journey. Android rocks! You will not lose your WebOS, it is still there, what you have will be a touchpad with dural boot system: Android+WebOS, you can swithch between easily.
Installation of Android CM7 Cyanogen Mod
Step 1: Backup all the important files on your TouchPad!!!
Step 2: Download CM7 Alpha 3, unzip it to your C drive root and put it in directory Android
C:\Android