jailbreaking the ipod touch is legal. But if you use the tool that gives you all apps free it is illegal.
NO, you can always restore your iDevice back to its original settings.
It is impossible to get an installer on an iPod Touch without jailbreaking.
It is up to you. No matter what you have on your ipod will become messed up when Jailbreaking...
You cannot get all apps for free without jailbreaking an iPod Touch. It is not possible.
Yes, jailbreaking does void the warranty.
No.
no
you cant
As of today (November 24th, 2010), jailbreaking an iPod Touch is not illegal. Is it 100% safe? No.
No it's quite safe to jailbreak the iPod touch and the iPhone. Jailbreaking is the process of opening up the iPhone or the iPod Touch up for installation of 3rd party applications. Following jailbreaking you can simply restore your device in iTunes at anytime to get it back to a factory state.
No, not without jailbreaking your iPod 2g.