iPhone

Dev Team, developers of iPhone 3G jailbreak has released tethered version of iPod Touch 2G Jailbreak, iPod Touch 2G version 2.1.1, 2.2.1, 2.2 can now be unlocked using a tool named Redsn0w lite, the fact that its a tethered release makes many of the Touch owners think twice before jailbreaking as iPhone Dev Team provides no support means you are on your own and there is a slight possibility of bricking iPod Touch( though you can do a full restore using iTunes). If you are a advanced user and having spare time then you can try jailbreaking your iPod Touch yourself but if you are newbie then you should avoid tethered release and wait for untethered release of iPod Touch 2G jailbreak which might become available soon. img credit milkman

iPod Touch 2G Jailbreak for Mac

The default guide was made for Mac only

Download iPod Touch 2G Jailbreak Unsupported Tethered release

Basic Instructions for iPod Touch 2g Jailbreak

Refer this thread by user veryniceipod for step by step instructions

iPod Touch 2G Jailbreak for Windows

1. Redsn0w lite
2. Xpwn-Nightly for Windows
3. iRecovery for Windows
3. 2.2.1 Update .ipsw download all firmwares from here via ipodtouchtricks
4. 2.1.1 Update .ipsw
5. Boot helper

Refer iPod touch 2G Jailbreaking in Windows tutorials by jfb392, -tcq42-

Warning: You are solely responsible for what you do, if you don’t understand jailbreak please avoid it and wait for untethered release.