OpenSSH for the iPod touch is installing an OpenSSH server on your iPod touch so you can connect to it. It's not an ssh client, insofar as I'm aware (and if it is, it's command-line based and you'd need one of the terminal apps to access it).
EDIT: I should point out that this is how things were back when I had a jailbroken iPhone, which hasn't been for several months now. Probably since 1.1.0 or so.
Go to your MAC (don't kno windows) and install cyberduck, then ssh into your touch (see the ip address in your touch at the Settings\WiFi\select the arrow from your connection)
OR
install AFPd in yout touch. This is an amazing program, because it will shows up your ipod Touch in your Finder (for Mac users). Then you just need to type "root" and your passaword (if you didn't change it, it's "alpine", or "dottie"
Problem solved!!!