You can jailbreak it semi-tethered but not untethered at the moment. search on Redmond Pie for a tutorial
No you just update form iTunes
You can update it to iOS 5 the same way you update it to any other iOS version. The 4th generation (and indeed the 3rd generation) iPod Touch can be updated to iOS 5.
No
iOS 5.1 untethered jailbreak
You cannot. If you buy a new iPod or iPad or iPhone, it comes in iOS 4.3.3 and you have a choice to update to IOS 5 or not.
You cannot. The iOS 5 update is only for Iphone 4, iPod touch 4, iPad 1, iPad 2
If its iOS 4 to iOS 4.3.5 then go to JailbreakMe.com If it has iOS 5 to iOS 5.0.1 use Redsn0w (provided down below in related links)
If it is running anything below iOS 5 you need a cord to update but if it is running iOS 5 or higher than you can update it using WI-Fi.
If it doesn't already come with it then go to iTunes and when your iPod comes up click "Check for Update" Then the proper update will download and install. If you already have iOS 5 and you want iOS 5.0.1 Then you can update directly from your iPod by going to Settings>General>Software Update to auto check for update.
it needs to be an ipod touch 3rd or 4th generation. just plug in with itunes and it will ask u if u want to update your software to ios 5
The apple iOS 5 update IS OUT NOW
If you have an iPod Touch 3rd generation, you can easily update to iOS 5.1.1 by plugging in your device to your iTunes-authorized computer and waiting for the pop up to download and update to the new software. If you are already running an earlier version of iOS 5, you can update wirelessly by going into Settings>General>Software Update. If you have a 4th generation iPod Touch, then you must update to iOS 6 because you are always forced to update to the latest iOS version available. I you have a 5th generation, you cannot downgrade to iOS 5.1 because that is not legally allowed by Apple and requires hacks.