This guide will take you every single step of the way through making sure you have the right iPod software installed, “jailbreaking” your iPod Touch, and then installing 3rd party software on it.
Note: The steps in this guide will be nearly identical if you want to jailbreak your iPhone, with the exception of the “Check your iPod Touch Software Version” and “Restore to Software Version 1.1.1”. The screenshots are specific to OS X, but Windows users should be able to follow along with no problem.