I was trying to jailbreak my itouch today and somewhy its not working for me. Right now, its jailbroken 1.1.4. I have the latest itunes.
First I used WinPWN 2.0.0.3 RC1. I used the 2.0 firmware. Then I made the builder, etc.
Well the problem is, when I put my itouch in DFU mode by turning off the ipod and holding power/home for 10sec then letting go of the power and holding for an extra 10sec. My computer detects the DFU mode, but then after a few sec, the iphone goes into recovery mode.
So I can't get it to stay in DFU mode so that I can restore the itouch with the custom 2.0 firmware.
Ya I got it to work. Try connecting it to another computer with itunes and after itunes detects it on that computer, put it in DFU mode. Then leave it like that and connect it to the computer you have WinPWN on or w.e. It worked for me that way. Hope this helps!