I can't believe this!A 13 year old boy hacked ipod touch within 9 hours, he did not have money to buy an ipod touch but he let his crack on macrumors website, people tested it and said it works good.
He created apple script that will actually let you install any applications for ipod touch only v1.1.1 !!!
If you are lucking for that software check google for iJailbreak or macrumors.