Here is my favorite way of Jailbreaking 1.1.4, it's what I used to Jailbreak mine, it's easy and I LOVE IT!
ZiPhone
1. Open iTunes and restore your iPod to 1.1.4 Frimware
2. Go to
http://www.download.ziphone.org/
3. Select if you have a Mac or PC
4. After the file has been downloaded, extract it to your Desktop
5. Open ZiPhone (Should be the icon on your desktop that looks like a pad-lock and it named unlockGUI)
5A. Make sure iTunes is still open
6. You now have the options of what you want to do.
6A. If you have a iTouch, I would suggest clicking the Jailbreak button ONLY!!!
6B. If you have a iPhone, it gives you the option to Jailbreak, Unlock, Activate, ect. it even has all the options for iPhone on one button to get it all done faster.
7. After you click your selection, you will see the setup running on your iPod, just let it do it's job!
8. After it is finished, iTunes will say your iPod is in recovery mode, just unplug your iPod and click OK in iTunes
Your Done!
Hope this helps!!!