Strongly recommend you do this from a 1.1.2 Jailbroken Ipod and not 1.1.1 because there seem to be more problems doing it from 1.1.1.Alright, here is my how to jailbreak video. This is a crude version of the jailbreak meaning it may not work perfectly, as you will see in my video there are some bugs. But its the best jailbreak there is so far.
iPod Touch Pc (Windows) Time Second Part of this Video