I currently have my mom's 2nd gen iPod touch 8GB MC model. I have blobs for 3.1.3, 4.0, 4.0.2, 4.1, and 4.2.1. I was wondering what firmware would be the best for this device.
I would say, Go for iOS 4.2.1 because many apps are still supported, download apps that you will need and will enjoy, because by the time iOS 6 comes out, many apps won't support iOS 4.2.1 anymore.