Jailbreaking is neither legal nor illigal. When you jailbreak apple will refuse to fix your ipod. Because after you jailbreak your warranty is invalid. (hint:just restore! lol)
It is up to you. No matter what you have on your ipod will become messed up when Jailbreaking...
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.
You cannot get all apps for free without jailbreaking an iPod Touch. It is not possible.
No, not without jailbreaking your iPod 2g.