No, jailbreaking isn't illegal. However it will void your warranty.
JailBreak your iDevice.
No. You will have to jailbreak your iDevice.
It's up to user preference whether or not to jailbreak your iDevice but there are a lot of benefits in doing so, like additional customization benefits.
You can't use it yet as the iPod/iPhone/iPad firmware 4.2.1 has not yet been released on jailbreak me. However, there is a tethered version of the jailbreak on redsn0w but needs an extra program for rebooting your idevice.
No, a court order made it legal to jailbreak.
The reason behind the jailbreak is sometimes theft of software (PS3 Games) and that is illegal.
This is not possible as you need special coding and software to Jailbreak an iDevice such as Chronic Dev-Teams Redsn0w, Ultrasn0w, Green Pois0n or Absinthe.
There are many ways to jailbreak such as KittyRa1n, RedSn0w and Spirit, however due to how old the 1st generation iPod is, support has completely dropped off and it is more worth it to upgrade to a newer iDevice to jailbreak. You can then get a lot more functionality out of your device.
It is not illegal to jailbreak an iPad.
No it is not illegal to jailbreak your iPod touch I did it once and I'm fine but do it right cuz it makes your iPod slow if you do it
basically you get a new app called Cydia, which allows you to download themes, games, apps, and useful utilities for your iDevice.
No as its illegal.