This guide shows you how to jailbreak your iPod Touch (1G or 2G) using the DevTeam's redsn0w tool.
First you'll need to do two things:
Backup and Restore your iPod Touch. Just connect to iTunes and sync. If you have any Cydia apps from a previous firmware, they will be deleted when we restore. Here's a few places you may want to back up manually if you're worried about it... I didn't.
/var/mobile/Library/AddressBook - Contacts
/var/mobile/Library/Calendar - Calendar
/var/mobile/Library/Notes - Notes
/var/mobile/Library/Safari - Bookmarks, Cookies
/var/mobile/Library/SMS - Text Messages.
Download redsn0w.
redsn0w 0.7 for Mac Megaupload