NOTE!!! you still need the C++ redistributable file. i will put it as a download at the bottom of this page.
you now do not need any of the other steps. quick freedom does it all. if you do not trust gui applications with your precious pod, i will leave the other steps up anyway.
I have re-ordered the steps to change priority. There is now a gui called quick freedom that Berky93 was kind enough to tell me about, and report its success. You can go to Quick freedom's homepage to download the newest release. Quick freedom supports custom boot logos, whereas my original instructable did not. I edited my favorite of the included 8 png files to include the words, "Cyle's Ipod" above the logo and"Jailbroken" below. This time i will fully document the jailbreak, because i will be doing it also! There will be a youtube video along with words.
The first time you start quick freedom it will check for the 2.2.1 original firmware file. if it can not locate the file for you it will give you the option to either browse to the file of download it through quickfreedom. it will also check for libusb. on windows xp and vista 32 bit it is as easy as clicking install libusb to get it installed, but on vista 64 bit, which i just happen to have, it is really hard. i am not going to cover vista 64 bit. any way, click next. Now you have the option to install installer, and the custom boot logo. you can choose to put installer in, but you dont have to. cydia is automatically installed. click add custom boot logo to see if there are any you like. You can also pick a new recovery logo. this is the connect to itunes logo you saw when you first bought your ipod. you can also make your own, just take the 320 x 480 pixels. anything that is not artwork must be transparent, so remember that. make sure you check custom boot logo if you want it, then click "create firmware". after that is done, you will have a jailbroken firmware ipsw file on your desktop. click next. put your ipod in DFU mode. if you dont know how, you can click the dfu instructions, or just do this: hold both buttons on the ipod down for 9 seconds, and then let go of the top power button. continue holding the bottom home button for another 9 seconds. down in the corner of quick freedom it will say dfu mode if you did it right. if not, try again. press start pre jailbreaking. if you dont do this, itunes will give you an error when trying to restore. after it is completed, you can close out of quick freedom. the next step is just telling you how to restore, but you've got me for that : ) open up itunes. it will complain about the ipod being in recovery mode, but just click ok. you are going to click restore, BUT MAKE SURE YOU HOLD DOWN SHIFT!!! if you dont all that work just went to waste. a file browser window will pop up, and you need to navigate to your desktop. once there, click on the jailbroken firmware file. the ipod will begin to restore. once it is done, so are you!! you can go to the step before the last step for some cool stuff : )
ROBOTS199's DFU MODE TRICK: It can be hard to get into DFU mode with only one pair of hands to do three jobs. I had a lot of trouble at first doing all three tasks at once. To solve this problem, have a second person connect the cable to the iPod , while you hold the power and home button.
EDIT:::: There is now a new version of the quick freedom program. it allows you to also change the "connect to itunes" logo. You can also now change your boot logo(s) without having to do a full restore. Only do this with an ipod touch 2nd gen that is already jailbroken. When you open up quick freedom, click change logo. pick your logos and create your firmware. Make sure you check the "already jailbroken" box. Put your ipod in recovery mode. this can usually be done by clicking the recovery mode button, but if you have to do it manually then follow the following directions: hold the bottom home button and plug your ipod into your computer. continue holding the home button for 10 seconds, and then the connect to itunes recovery logo will popup. in itunes hold shift and click restore and browse to the "custom nor.ipsw" file which will be located on your desktop. This supposedly will only change the boot logos, and nothing else. I dont know if it will work that way yet, but i will get back to you as soon as i find out, which will be pretty soon 'cus im really digging that bottom-left recovery logo. i may even customize it with some kind of "It's all your fault!!" text or something... heh.. hehe. Thats actually a pretty funny thing. You break your ipod and get scolded. Anyway, have fun.