You can visit my guide. It's in my signature. Also when I bought my iPod Touch like 2 weeks ago it was a 1.1.3 out of the box and I jailbreaked it a lot. I didn't lose the normal 1.1.3 update, so if I would want to go back to normal 1.1.3 then I can since I'm guessing Apple just checks the Serial Number for the device and if it's in there | 1.1.3 + | list then you get the update for free. I also did all my jailbreaking on iTunes 7.6. After you OktoPrep to 1.1.2 your iPod will be in "Plug to iTunes" mode, the way that I got out of this was by downloading iNdependence and simply just opening the application up and letting it "Connect to iPhone" & "Disconnecting from iPhone".