After that i was hitting the "perform actions" butten while it was in downgrade bootloader (not that smart). Aftrer that it comes up with the messenge: BSD root : md0, major 2, minor 0. It keep saying that, and i cant get it conected to itunes.
Start the phone in DFU mode by holding down both home and sleep buttons. When the screen turns black, let go of the sleep button and continue to hold the home button. itunes will find the phone in recovery mode, then do a fresh restore to 1.1.4.
Make sure you don't do any bootloader or baseband downgrading. Your ipod touch doesn't have a baseband. Select the option to jailbreak "ipod touch".