So I read that greenp0ison was updated to jailbreak iPod touch's running on 4.1, I learned this a couple days after I upgraded my 8gb iPod touch 2g MC model to 4.2.1. Is there a way to downgrade to 4.1? Any and all help is appreciated.
You can run a tethered jailbreak, which isn't a huge problem for iPods as you don't have to rely on them as strongly as you would a phone. I'd try the tethered jailbreak if I were you, as there isn't a downside to giving it a shot. The worst case scenario, in the event that you don't like the tetheredness of it, is that you just simply restore to the stock 4.2.1 firmware.
Yeah, I just wrongly assume that anyone just now learning about jailbreaking is fairly new to the iDevice world and therefore has a newer device. Oh well.