First go to Wikipedia and look up Jailbreak (iPhone OS) to check which software versions you have and their jailbreak programs. Also check your device's version. (2G, 3G...?)
If you have the latest software, 3.1.3, you cannot jailbreak at this time. You can download the recovery file to downgrade to 3.1.2 at this site: http://www.felixbruns.de/iPod/firmware/
*Note that iPod 3G 8GB with downgraded 3.1.2's must read special instructions at the bottom of this response.
Once you have found your make and software version with a corresponding jailbreak, Google search for your jailbreak program. If you have 3.1.2, go to blackra1n.com and download it there (Windows logo for Windows, Apple logo for Macs). Connect your iPod with the USB cord to your computer and run blackra1n.exe. Your iPod should be jailbroken within minutes, depending on your computer. (for me, it was 30 seconds for a modern, middle-end computer)
Once jailbroken go to your home screen on your iPod and after connecting to a Wi-Fi network start the blackra1n icon on one of the screens. Select Cydia from the list. After Cydia is installed, you can uninstall the blackra1n app (it won't unjailbreak your iPod). Go into Cydia and after installing all updates search for these recommended programs:
-WinterBoard (manages theme files)
-FontSwap (switches fonts)
-afc2add (allows user-controlled programs to look inside and manage your iPod's internal files, iFunBox is an example)
-SBSettings (convenient everything panel)
Have fun with your jailbroken iPod!
*Those with iPod Touch 3G 8GB who downgraded to 3.1.2 have special instructions (your iPod has a "tethered jailbreak"): whenever a program wants to reboot the device, you MUST plug your iPod into your computer with the USB cord and start blackra1n.exe to reboot. If your iPod dies (no battery left) or in other words is completely shut off, you must do the same procedure. If you don't, it will go into recovery mode (which means you lost your jailbreak). You must then rejailbreak your iPod. Note that in recovery mode your iPod doesn't function.
you cannot multitask on the itouch unless you jailbreak it.
That is actually impossible. Jailbreak is only for iPad, Iphone, and Itouch.
Updating the iPod Touch software erases the jailbreak. You can update, but it will erase your jailbreak.
its not 100% safe and still has a chance of breaking. Remember if you do jailbreak you itouch and it breaks your warrantee will cancel out and you wont be able to buy i new one unless you buy a new one. And you can jailbreak your itouch from either jailbreakme.com on your itouch or ziphone.org on your PC
http://www.jailbreak-devteam.free.bg/
yes
go to youtube and search jailbreak and it will show you how to do it step by step
The App Store? Yes.
you get all apps free
Yes but you have to jailbreak it first or wait for the SDK
But what?
Yes, you still can