Did this over the weekend nice piece of kit now with so many new toys on it, its just like the iphone have to say best thing since sliced bread
Itouch jailbreaking is basically unlocking your itouch so you can download loads of third party apps onto your itouch. You can even download a Nintendo simulator, and having played Mario Bros I'd nearly say its better than playing the real thing! Word of warning to those thinking of doing it though, there has been stories peoples itouch not working after jailbreaking, and if you do try to jailbreak it the warranty becomes null and void.
Its the ipod itouch as Sean said it can lose its warranty mine has been fine since some good stuff on it including Nintendo games etc
Shay you need to be on firmware 1.1.4 then you download ziphone can be found on www.ziphone.com once its downloaded you just connect your ipod to pc and click on jailbread ipod and it does the rest in about 30 seconds. Your Ipod will go into recovery mode reboot and once it loads up again you will see an installer application on the home screen. There are far too many items to list for downloading but there are lot more things than games. Do a search on youtube for jailbreak ipod with ziphone and you will get a visual on it