click ok installer will refresh, when its done go back to install and look for a category called 1.1.3 Jailbreak+Apps click on that then click on the only item in there and click install then install again and it will bring up a bunch of ok boxes read them click ok on each one then leave the ipod for maybe upto an hour (it may look like its frozen but it hasn't) and eventually it will reboot your touch into 1.1.3 with all the bells and whistles you would normally have to pay apple for