Hiya,
I was in the same position as you last week, didn't know where to start - it seemed as complicated as nuclear physics
First thing to do is downgrade to 1.1.1 - you
have to do this.
Go to this
site
and go to 'Step 1: Downgrade to 1.1.1' for the link for the 1.1.1 download.
When you have downloaded it go to iTunes, make sure your Touch is plugged in, click the symbol for your Touch in the menu on the left so that the information screen comes up (ie the main screen to the right). You'll see the screen with the picture of your Touch etc, hold down your 'alt' key and click restore. A window will pop up, in that window locate the 1.1.1 firmware you have downloaded and click open.
Your Touch will start downgrading to 1.1.1. Follow the usual instructions. NB: when it asks you make sure you set your Touch up as a NEW iPod.
Once you've done this your Touch should be downgraded - to double check go to Settings on your Touch, click General, then About - third from bottom you will see 'Version', make sure it says 1.1.1.
If that's okay then go to Safari on your Touch and type in jailbreakme.com.
When the site comes up scroll down to the bottom and click 'Install AppSnapp'.
This took a few tries for me before it finally starting downloading.
When it's done your Touch will lock - just unlock it and you should see 'Installer' on the screen.
From this point the best thing to do is have a look at this
YouTube video, it worked blissfully well for me
Hope it works out. Honest, it's easy - and worth it. Don't worry about your Touch, it'll survive all of the above.
