the way i did it was:
1. Create Folder on desktop called: ipod music
drag all music from itunes into this folder
2. Create Folder on desktop called: ipod videos
drag all videos from itunes into this folder
3. Create Folder on desktop called: ipod apps
drag all apps from itunes into this folder (dont put any cydia apps, only ones you got form the App Store)
the ipod apps folder is for backup incase you ever want to go back to 2.1
4. Uninstall iTunes (make sure you restart your computer after uninstalling)
5. Search "iTunes" on your computer and delete anything related to "iTunes Library"
6. Install iTunes 7.5
7. place all music and videos from the folders you created into iTunes
8. connect ipod and put in DFU mode
9. Restore to 1.1.4, im not sure if 1.1.5 works with 7.5 or if 1.1.4 works with 7.7, but if you are jailbreaking it is best to use 1.1.4
its a long process, but it works
