iPod Touch 2G Jailbreak Released
The official iPod Touch 2G jailbreak has been released by the iPhone Dev-Team. These guys don't actually work for Apple... some would say that they work for you...
Anyway, the previous version required the hack to be re-applied every time the device was started up, which would be really inconvenient.
The iPod Touch 2G is now another member of the “pwned for life” family. It has a fatal flaw in its bootrom that means you will always be able to pwn these devices no matter what firmware updates come along. This is the full, untethered jailbreak, something that iPod Touch 2G users have not had before today.
The team had been hanging on to this patch because there was the possibility the exploit could be used on future iPhone versions. Unfortunately, a group started selling the code, so the team was forced to release it for free. iPod owners are certainly happy though. There is a tutorial available for updating a factory reset iPod (backup link). The team will include the patch in future official tools.
Please be advised that using this hack voids your warranty (duh), but you'll have access to apps from outside the App Store ecosystem.
Here it is. Just drop it into your existing pwnagetool or xpwn flow. You can even combine it with the nor-only variations to make this easy to install from iTunes without touching your main fs.