Ziphone, google it :)
I would use Ziphone
The legal repurcussions of using Ziphone will depend upon the country one is in. For example, in the US using Ziphone is considered lawful although it may break warranty terms.
No, it is not. Use this on an iPhone and you void the warranty.
You can restore your iPod, and jailbreak it again. If you haven't used Ziphone, copy this URL: http://www.ziphone.orginto your browser, and search it up. Site will allow you to download the software for free. It has worked perfectly for me, and many of my friends, so you should use it. (Don't worry, it's virus free)
It most likely is compatible, but there is a highly detailed process in removing the battery from iPhones, which involves removing the entire back panel on the 3G, and the lower black back panel on the 1st Gen. This could be costly if you choose this method, and to my knowledge, Apple will not cover your iPhone at all if you have installed the ZiPhone Software. If you have installed ZiPhone, I would HIGHLY recommend that you NOT go through with changing batteries. Comments, questions, or concerns? Message me!
Yes there is and you dont have to restore your ipod and it only about a minute depending on how slow your i pod touch is and whats great about it is that it works on any firmware of pretty much anything from apple Ipad, Iphone etc. all you do is go to Safari on your Ipod touch and type in jailbreakme.com it will come up with a screen saying slide to jailbreak slide it and wait and your done! OR You can also go to http://www.ziphone.org/ and download the installer that goes on your computer. ZiPhone's jail break is more stable and allows you to chose what firmware you would like to have on your iPod. You can even customize the firmware to make it say whatever you want. Plus, it includes Cydia which is an app that downloads any free app. It's a little more work but definitely worth it.