I think all that is is a vpn tunnel? If so you would need to setup a vpn server somewhere. And then in your touch go to Settings -> General -> Network -> VPN and connect to the vpn. Then it sends all your traffic over vpn when you are by a wifi.
I would say that will depend on finding a module for a tun device. Also, check out iodine,it picks up where nstx left off
iodine works on osX, while nstx does not, so I figure we have a better chance of seeing an ip over dns tunnel on the iphone / itouch with iodine.