Computing

First, make sure that the iPod is using firmware version 1.1.1
If you are already using firmware version 1.1.1 then skip this section

Download and install firmware version 1.1.1

If you don’t then download the file from Apple by clicking here

The file arrives as iPod1,1_1.1.1_3A110a_Restore.ipsw.zip. Remove the .zip and make sure to retain the .ipsw. This file MUST remain compressed. On a Mac, Safari might be inclined to unzip this file for you, and then throw the zipped file in the trash. Get rid of the uncompressed stuff because you don’t need it. Pull the zipped file out of the trash, put it in a safe place and rename it as appropriate.

Start iTunes and connect the iPod to your computer
In iTunes, select yor iPod and then go to it’s summary page
Hold down the Option key while clicking the Restore button. This will allow you to select the update file you want to apply rather than going with iTune’s choice.
Select the .ipsw file that you downloaded and begin the update.
When the update is done, your iPod will reset itself. It will have none of your content left on it, and will appear as a new iPod fresh out of it’s box, with firmware 1.1.1.
Do NOT register your iPod with iTunes at this time. (this probably doesn’t matter, but this is the way I did it and I was successful)

Firmware Version 1.1.1 Installed:

Disconnect the iPod from your computer.
Make sure WiFi is enabled on your iPod Touch, and connected to a network.
Start Safari on the iPod Touch and navigate to http://www.jailbreakme.com.
Go to the bottom of the page ad click on “Install AppSnap”

Once it is installed, restart the iPod by holding the “Sleep/Wake” button on top of the iPod for more than three seconds, and then, after the iPod has turned of, press the “Sleep/Wake” button again to turn it back on.
On the iPod, click the “Installer” app, find the OKtoPrep app and install it. (OKtoPrep allows the Jailbreak code later on to access your iPod so that it can install itself.)

Now that OKtoPrep is installed, reconnect the iPod to your computer and start iTunes (if it isn’t already started).
iTunes will see the new iPod and try to set it up. Do NOT click the Restore button because it will wipe ot OKtoPrep, making you have to start over.
Enter the name you want to give your iPod and click Update
In iTunes, from the iPod’s summary page, allow iTunes to update your iPod to firmware version 1.1.2. This will take several minutes.

When the iPod is updated to 1.1.2, close iTunes but leave the iPod connected to the computer.
Note: the installer is no longer visible on the iPod Touch. This is OK.
Download (on your computer) the jailbreak software from here.
Once it is downloaded, uncompress it and double click on the file “jailbreak.jar”
A warning will come up. Just click OK to continue.
When the main window comes up, click the “Jailbreak” button.
The jail break software will be installed on your iPod. It will take a couple of minutes.
When the jailbreak is done, the iPod will restart twice on it’s own again.

Your done! Connect your iPod to iTunes and put your music back on. On the iPod Touch go to the installer app and browse the available apps and themes, etc.
One of the things you can now do is install some of the iPhone apps on your iPod. Go to the installer app and in the bottom right corner click “Sources". Click the Edit button at the top right, and then click the “Add” button on the top left to add a new source. Add this url: http://repo.us.to