Oh heaven help these poor souls. Sorry to be rude, but, you did a REALLY stupid thing. 2.0 WILL NOT brick your Touch - if you do it right!
Now, what you SHOULD have done, going from 1.1.4 jailbroken to 2.0 NOT jailbroken, and not having gotten 2.0 yet too!:
1) With a WORKING Touch, Connect it to iTunes, press 'Restore', when finished DO NOT press 'restore from backup', press 'new iPod' instead. This is VERY important!!!! Also, hit 'remind me later' on the 2.0 update page. You WILL LOSE all your desktop web icons too!
2) Let it sync all your songs back onto it, when you know it's done disconnect & test that it all works. There should be NO INSTALLER.APP!
3) Reconnect, and hit upgrade to 2.0 firmware on the 2.0 page that should automatically appear. This will cost you $9.95 USD, or $12.99 AUD.
4) Let the 2.0 download, DO NOT disconnect or even TOUCH the Touch at all! Leave it, you can do without it for 30 mins while it upgrades!
5) Let it install the upgrade. Mine took about 20 mins to install (30 to download), it appears nothing is happening but IT IS!
6) When it finishes, test that everything works, and try download an app. This works different to Jailbreak, you hit install in AppStore, it returns to the springboard (desktop) and has the icon with 'loading...', this means its downloading the app. It then says 'installing...' and will install. The blue bar shows how far complete it is. DO NOT touch the iPod during app installs! (Unless the display dims, then touch it ONCE)
7) Hopefully 2.0 works for you - no problems!
Tell me if it won't work for you after following this guide.
SuperMacMan