Hey there guys i thought that i might put up how to jailbreak the ipod touch version 2.21, basically what you need to do is download a program called redsnow on your computer, ones you have done that you need to put your ipod in a thing called "D" mode all you do is hold down the home button and the lock button at the same time for about 10 seconds but you have to have you ipod plugged in to your computer when you do this, once you have done that the computer will start making noises then you open up the redsnow file and open up the program in it. a running pinapple will come up on the screen of your ipod once that has loaded the ipod should turn its self back on, this will take sometime to do.
check out the videos on youtube that is where i learnt how to jailbreak my ipod.