Hello everyone. I was thinking and since this is a hacking site, maybe hacking an iPod should deserve to be on this site. First off, I AM NOT RESPONSIBLE FOR ANYTHING THAT HAPPENS TO YOUR IPOD!!
Best way to jailbreak is to go to: Jailbreakme.com ON YOUR IPOD TOUCH not your computer. It will literally say "Slide to jailbreak." All you gotta do is slide and wait. It shouldnt take more then 10 minutes, mine took like 2 minutes.
Also, don't update past 4.0.1, the last firmware the website supports. Also before you jailbreak, above where it says "Slide to Jailbreak." press more info and read that. Make sure that your iPod is supported by the web site.
Video proof it works:
THIS IS NOT MY VIDEO AND I TAKE NO CREDITS FOR IT!!