altering the factory software so you can download stuff from other places not only of the app store. jailbreaking can be dangerous for your device
Yes; not jailbreaking it. If you mean a way to do the same thing as jailbreaking without actually doing so, there is no current way to do so.
It is up to you. No matter what you have on your ipod will become messed up when Jailbreaking...
As of today (November 24th, 2010), jailbreaking an iPod Touch is not illegal. Is it 100% safe? No.
"Jailbreaking" is another word hacking. Therefore you void your warranty but you get cydia, a jailbreaking software. Jailbreaking does have it advantages and Disadvantages. But if you want to send it to apple to repair it you have to restore it to factory settings to get back your warranty.
Jailbreaking an iPod could either be a success or a failure (meaning your iPod could break). It's your decision, but a risky one.
I think that many people are finding the most jailbreaking software for their ipod.
Yes, jailbreaking does void the warranty.
Yes
It is illegal.
no
you cant
jailbreaking the ipod touch is legal. But if you use the tool that gives you all apps free it is illegal.