Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Make sure you turn off auto-sync for your iPod when you plug it in. This way iTunes won't have a chance to break Oktoprep.

If this doesn't work, just restart the iPod, and see if that does the trick.
 
Also, and this may sound very, very obvious (but many folks still seem to make the mistake) - but make sure you click "update" and not "restore" in iTunes.

/captain obvious
 
It WOrkked

I held down the HOME Button while I downgraded back to 1.1.1, Rebooted after I installed OktoPrep, now im in 1.1.3 with apps and Jailbroken, thank you!!
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.