I used the drop bear key install for my 1.1.1 jailbreak and liked that it didn't involve the BSD subsytem. I felt that it really bogged the ipod down. So now after going to 1.1.2 is there a way to ftp without installing the bsd subsystem?
That is a Unix system and it is needed to manipulate the workings of the Touch. It should not bog down your Touch. If you are having problems, shut down the Touch and restart. That will clear caches any a few other things. If you want to see what is running on the Touch, load iSpit from the Installer.