touchfree have released a brand new jailbreak that can be done by visiting just one link from safari and takes less than a minute to jailbreak your ipodtouch!

Before jailbreaking it’s reccomended you:

give the battery a full charge
restore your ipod to factory status trhough iTunes
Close iTunes and end any processes in task manager related to iTunes.

To jailbreak your ipod touch in less than 2 minutes just visit the following link from your ipod touch:

**DO NOT VISIT THE LINK UNLESS YOU WANT TO JAILBREAK YOUR TOUCH **
http://www.slovix.com/touchfree/jb/

What will you need?:
iPhone Apps
SFTP Program
WiFi Connection
Your iPod Touch’s IP Address

Once you have downloaded the iphone applications, your download folder should contain the following files:

• GMM.framework
• Maps.app
• MobileMail.app
• MobileMailSettings.bundle
• MobilesNotes.app
• N45AP.plist
• Stocks.app
• Weather.app

You will also need an FTP program that supports SFTP to add the applications to your ipod touch:

• Windows: WinSCP
• Mac: Cyberduck
  

To find out your ip address go to: Settings>Wi-Fi then Under “Choose a Network” press the arrow on the right of your network connection and make a note of your ip address.

The default login for the ipodtouch is:

• User: root
• Pass: alpine

After you have extracted the iphone files you will need to SFTP into your ipod touch and place them in the following locations:

** CHMOD all files to 755 **

Weather.app, MobileMail.app, Stock.app, Maps.app, MobileNotes in:
/Applications/

GMM.framework in:
/System/Library/Frameworks/

N45AP.plist in:
/System/Library/CoreServices/SpringBoard.app/

MobileMailSettings.bundle in:
/System/Library/PreferenceBundles/

Reboot your iPod Touch after transferring all the files across.

It’s now extremely easy to jailbreak your ipod touch on Firmware v1.1.1 thanks to touchfree

Before you run touchfree we reccomend you do the following:
Restore your ipod in iTunes
Give the battery a full charge

After you have restored your ipod close iTunes and open the processes tab in task manager (CTRL+ALT+DELETE) and End the process of any iTunes instances such as:

• iPodService.exe
• iTunesHelper.exe
• AppleMobileDeviceService.exe

etc..
Then Download and run v0.6 of touchfree and follow the onscreen instructions.  Whole process takes around 10 minutes.

After you jailbreak your ipodtouch you can install applications and games a good start would be the iPhone applications:
Mail
Weather
Stock
Notes
Calander Fix

To make your own SummerBoard theme follow these steps:

1.  Create a new folder with the name of your theme e.g <Example>

2. You need to create 3 images for your theme:

• StatusBar (optional, 320×20 PNG, alpha)
• Wallpaper (320×480 PNG, no alpha)
• Dock (320×91 PNG, alpha)

(alpha = Transparency)

These need to named in the following format:

• Music.png
• Photos.png
• Videos.png

etc.

TIP*

If your using Photoshop use the “Save for Web” option (Shortcut keys: CTRL + SHIFT + ALT + S)  This will reduce and optimize your icons for your ipod touch.

Source: http://www.apptapp.com/