Many of you newbs are behind the curve, and i would refrain from answering unless you have concrete answer, as spirit doesnt work on FWs greater than 3.1.3. iRecovery kicks devices out of recovery mode only when a restore is completed and errors out at the end (error 1015 or similar). Use redsn0w 0.95 to Jailbreak an iPod Touch 2nd Gen on iOS 4.0.
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Redsn0w cannot jailbreak iOS 4.0 on an MC model. So I have downgraded to 3.1.2, then jailbreaked with Spirit. I will just have to wait for a solid working 4.0 jailbreak.
Spirit Jailbreak should do the trick http://spiritjb.com/ and if it helps, there is a program out there to kick you out of recovery mode, but i forget its name atm. i think its iRecover or something similar
Heheh, it's not that easy my friend!
you need to use iReb.. or iRecovery.. (http://ih8sn0w.com/index.php/welcome.snow) and downgrade, use the program then jailbreak with Spirit or redsn0w (and/or maybe even with Blackra1n)
Sorry about that... I just had to do that. It was the closest thing to an Ipod touch They had.