The new version of iJailbreak sounded so easy, I decided to re-jailbreak my iTouch. (When the software update came out, I unjailbroke it to get ready for the SDK) I hit "Jailbreak", and I saw all the text scrolling on the screen. It took about 10 seconds, and then said "Have fun with your newly jailbroken iPod touch". When I rebooted my touch, it showed the Connect to iTunes logo that you see when you first buy one.
When I connected it to iTunes, it gave me some error like "iTunes could not connect to iPod "" because of an unknown error 0x??????". I rebooted my iPod, and held down the home button to restore. It successfully restored with a backup, complete with all of my content and even the January upgrade. So, just letting everyone know here. Don't jailbreak your touch yet, even if it's an 8GB. If you're brave, then you can restore. Just make a backup first. Does anyone know what went wrong here? If there's a brick-free way of jailbreaking 1.1.4, then I might want to try it.