the upside of jailbreaking your iPod is you can get all apps for free (including apps that usually cost money) and get some apps that are not even in the app store. the downside is sometimes the download goes wrong and it messes up your iPod. also sometimes (even if your download went right) your iPod can just stop working and you would not be able to fix it. if that happens you would have to get a new iPod.
It is up to you. No matter what you have on your ipod will become messed up when Jailbreaking...
As of today (November 24th, 2010), jailbreaking an iPod Touch is not illegal. Is it 100% safe? No.
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.