Just an update, I did use ziphone with my 32gb touch on 1.1.4 and it worked great, no problems whatsoever, and very quick. I definitely recommend it. I had a 16gb one which I had jailbroken through the more complicated method of downgrading and upgrading, prepping, d/ling firmware, etc, and this was much easier. And people who keep talking about jailbreaking being dangerous to your ipod of warranty just have no idea what they're talking about.
yay! Congrats on a fully functional iPod touch!