iPod Touch 2G Jailbreak Solution: Redsn0w
iPhone dev team has already launched the tethered Jailbreak, we were waiting this to happen but this Jailbreak is a not for everyone as it is fairly complicated and if you are a new iPod Touch user, utmost care should be taken while performing the jailbreak steps. If you don’t understand what you are doing then probably this Jailbreak solution isn’t for you as it can brick your iPod Touch. Dev team will not be providing any support for Redsn0w so you are on your own. The released Redsn0w Jailbreak version was for Mac only but Windows Jailbreak for iPod Touch 2G is now also available.
Mac iPod Touch 2G Jailbreak
Download Redsn0w for Mac, How to Jailbreak iPod Touch 2G instructions
Windows iPod Touch 2G Jailbreak step by step guide
Download Instructions on how to Jailbreak on Windows Rapidshare link thanks to pheonix_1018 for automated version.
Note: You are responsible yourself if anything bad happens with your iPod Touch 2G
update:
New links for Jailbreaking on Windows download link 1, link 2
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link dead!