The iPod Touch firmware 2.1 has been jailbroken with a non user friendly version of QuickPwn. There is no pretty interface just command line. The iPhone-Dev Team has stated that this in not one of their official releases. Wait a few hours or days if you can.
Guys be careful. Sometimes iTunes 8 won’t recognize the iPod touch after pwning. I have the new iPod touch so I will be keeping you up-to date with stuff for the new touch as well. I can still help with the old touch as well, I still have all of the firmwares and stuff.