I used the pwnage tool that came out yesterday. I have a 1st gen ipod touch. All went well and everything works fine. Cydia works, winterboard works (ihave the icomplete theme installed and working, I have also installed mobile installation for the 3.0 firmware and that is running fine.
All in all for me my ipod is exactly the same as it was this time last weeks but running os 3.0
(I downloaded the 3.0 firmware from felix burns the used pwnage tool to create a custom restore .ipsw. The I opened iTunes pressed alt and chose my firmware to restore to. It was a flawless install. I installed it over 2.2.1 and didn't upgrade to 3.0 through iTunes.