Wirelessly posted (Mozilla/5.0 (iPod; U; CPU iPhone OS 2_0_1 like Mac OS X; en-us) AppleWebKit/525.18.1 (KHTML, like Gecko) Version/3.1.1 Mobile/5B108 Safari/525.20)
Dean, hacking into your iPod to gain more functionality is not illegal. Changing what OS I run is not illigal, it is my iPod and I can do what I wish to it.
Putting Roms from the Internet however is illegal. That is taking intellectual property from the game manufacuter and not buying it yet still using it.
Google: SSH into my iPod touch and you can learn how to acess your iPod Touch.