Just a shortish note to say it *can* be done ... here's my quick pwn story
Hackintosh (that's another story ) - P4 @ 2.79GHz 2GB - OS X 10.4.11
iPod Touch 16GB - was pwned to 2.0.1 via PwnageTool.
1) In OS X - update your iTouch to 2.0.2 via iTunes - this step scared the shizzle out of me - some instructions were 'ambigious', so let me make it plain: USE ITUNES TO UPDATE YOUR ITOUCH TO 2.0.2
Yes, you'll lose all your non-'App Store' apps. Cope. Download them again once you've finished.
It's a relatively quick and painless procedure otherwise, and you won't lose your music, mail or contacts.
1.1) Once you've finished, unplug the phone & quit iTunes.2) Download Sun's 'Virtual Box' : VirtualBox. Similar to Parallels or VMWare, but free ...
1.2) Locate the ipsw file that iTunes downloaded to update your iTouch (in my case "/Users/<your_login_name>/Library/iTunes/iPod Software Updates/iPod1,1_2.0.2SC1_Restore.ipsw"). Copy to a convenient location e.g.: Desktop.
3) Install VBox, then install OS (I used WinXP - YMMV). I had this setup ages ago ... Boot it and update (to be as safe as you can be in Windows ...). Configure so that your home folder is a shared folder (RTFM).
4) Open IE (or install FF for XP), then download & install QuickPwn from the freaking generous geniuses at blog.iphone-dev.org - bow and pay homage to them and all that put the package together (props to poorlad) ... Expand the zipped file.
5) Run QuickPwn. If you get an error "application failed to initialize properly (0xc0000135)", follow the directions on this site: http://www.modmyi.com/forums/news/29...indows-12.html.
6) To jailbreak, follow the directions at http://www.modmyi.com/forums/pwnage/...re-fusion.html.
7) Remember to kill iTunesHelper via Activity Monitor in OSX - and make sure VBox is connecting to your iTouch via USB (keep checking the menu - reactivate it when the device goes from normal mode to DFU mode to Restore mode).
8) It's hair-raising, and took numerous goes - but it can be done (to quote DNA: "DON'T PANIC"!. Had to give it a go 3 times - and had a scary black screen for ages. It got better.
10) After jailbreak - download your stuff via Cydia (Installer works, but still in beta ... I'm not feelin' the love for it yet).
Thank you to all who have done the hard work - I'm no 'hacker', or programmer by any means,
but I stand on the shoulders of giants!