Your State of Jailbreak:
Good news! There are several jailbreaks available for your iPod touch. Choose one of the options below and follow the tutorial to get yourself jailbroken:
greenpois0n, like limera1n is a fairly simple and straightforward jailbreak that supports most devices. While not quite as user friendly as a jailbreak such as JailbreakMe it remains to be a solid choice. Recommended
redsn0w, while a bit more complicated to use than something like limera1n or greenpois0n still is about as robust and full featured of a jailbreaking program that you can get. Using redsn0w 0.9.6rc8 you can enable Homescreen Wallpapers as well as Native Multitasking along with custom boot and recovery logos.