This is for MAC USERS

ok,
1. I went to http://iJailbreak.com and downloaded the program
2. WITHOUT CONNECTING THE IPOD, i opened the jailbreak program and clicked jailbreak.
3. Using the ITouch, i went to HttP://jailbreak.toc2rta.com/ (you need to type this in completely http required, / at the end required)
This will crash Safari, dont worry its supposed to happen
4. After the Ipod's safari crashes, i plug it into the computer, and close out itunes
5. Following all of the instructions that the Jailbreak program told me to do, (required a few restarts of the ITouch) My Itouch was fully jailbroken
Itunes was able to read the itouch afterwords

Hope this helps :D