install community sources thats why theres barely anything in installer right now, you need to install that source to add more.
if you jailbroke 1.1.1 then go into installer install community sources, let the sources re-load, then find OKTOPREP and install it, download this file
http://appldnld.apple.com.edgesuite...071107.9g3DF/iPod1,1_1.1.2_3B48b_Restore.ipsw
go to itunes shift+click on UPDATE find the file above that you just downloaded and update, once thats done exit itunes and download
http://conceitedsoftware.com/iphone/112jb.html
extract it and read the readme about the ipod touch ignore stuff about iphone, this will give you jailbroken 1.1.2
then to get 1.1.4, either add this source to installer and install the soft update via installer ipodtouchmaster.com/files/repo.xml
to add a source go to sources-edit-add and type that in
OR to jailbreak via your pc
download This Package
http://www.ipodtouchmaster.com/files/1.1.4=2520Jailbreak.zip
Put the 1.1.4 Jailbreak folder on your desktop, and open it up. Find the file inside called jailbreak, and double click it. At this point make sure your ipod is on, fully charged, or plugged in, that it meets the requirements above, has auto lock set to never, and connected to wifi. Now follow the instructions that will be shown on screen. at the end it should restart by itself and boot into a jailbroken with the iphone applications 1.1.4. Now the whole process may take anywhere from 20-45minutes depending on your internet connection, it takes so long because it has to download the firmware from apple. Now at some points it may look like it is frozen and not doing anything, but leave it alone it is working.