So, 2.0 is buggy on your iPod Touch, huh. Want to downgrade, without having to downgrade iTunes?

Requirements:

-iPod Touch with 2.0-2.0.2 firmware
-The iPod Touch 1.1.4 firmware: Get it off of RapidShare or a torrent because of the size limit MMiF lets you have.
-PwnageTool
-iTunes

First, download the latest version of PwnageTool. You can google this up and easily download. PwnageTool is a jail-breaker for iPhones, iPod Touches, and 3G's.

Open PwnageTool, and toggle "Expert Mode" at the top. Select iPod Touch.

PwnageTool will browse for .ipsw files in the Library folder. So give it some time to browse.
Once complete, create an .ipsw file for the firmware 1.1.4. You can do this by browsing in Finder to Library/iTunes/iPod Software Updates. If you don't have the 1.1.4 firmware, you can download it in this thread.
If you are new to PwnageTool, follow the instructions in PwnageTool on how to create a jailbroken .ipsw file.

Now, it's been said that iTunes doesn't allow you to downgrade from an official to an official firmware. But you can downgrade from an official to a jailbroken firmware. Yes it is possible, and also works with jailbroken to jailbroken.

After you've created the 1.1.4 .ipsw restore with PwnageTool, it's time to open up iTunes. Don't forget to put your iPod in DFU mode, PwnageTool gives complete instructions on how to do this.

After putting your iPod in DFU mode, plug it in. iTunes will give you a notification that says something like "iTunes found a device in restore mode." Just hit OK.

Before pressing the Restore button, hit the Alt/Option key on your keyboard and hold it while pressing the Restore button. This will bring up a new window where you can select a firmware to restore to. You want to press the 1.1.4 firmware you just made.

And if all is well, you were able to downgrade 2.0 to 1.1.4. Congratulations!!!

If you have any questions, please email me @ [email protected] or reply to this thread and I'll answer any questions you have.

Thanks,

Xander.