*Still confused....* I dled the 4.2.1 firmware, but don't have a clue where to go from there .
[idk if this is right, so dont flame me if it fucks up.
download a back up of 4.3.2.]
...if there is nothing on ur ipod, forget this sentence.
if it is, back that shit up.
plug ur ipod into computer.
Hold Sleep for like 3 seconds, then keep holding Sleep and press home for 20 seconds. make sure u count to 20.
let go of sleep and hold home for 5 more seconds.
should be in DFU mode now. (your pc will make a sound as if you just inserted it in there.)
then, start redsn0w or greenpois0n.
What you have to do to downgrade is you have to go to the tiny umbrella and patch the server and you can only jailbreak if you have 4.2.1 shsh blobs saved to tinyumbrella or cydia. if you dont have any of those save or that does not work i can show you were to get a untethered jailbreak for 4.3.2. Also if you go to youtube and search everythingapplepro this guy has all the updates and can show you how to jailbreak and still have all your stuff on your ipod. and on more thing. i do hope you know that if you jailbreak your ipod then your ipod is out of warranty and you will not be able to return it within the 30 day return policy. you will have to restore it do default settings.