Quick Q's

you will probably have to hunt around a little bit for the 1.1.1 firmware

but this thread should help you jailbreak 1.1.2 once you are downgraded to 1.1.1, jailbroken, then upgraded to 1.1.2

http://www.ipodtouchfans.com/forums/showthread.php?t=8678

also for jailbreaking 1.1.1 i would use www.tinyurl.com/36dsyz

it may seem like a sketchy link, but trust me it was made by one of the original hackers for the ipod touch

 

search around the forums, you'll find one without too much trouble, you can also search on torrent sites.

there are a few others, but from what i can tell, jailbreakme.com works best (it's the one i used.)

when you plug it in it will be exactly the same, but will tell you there is updated firmware, you can tell it not to alert you again, and if you decide to upgrade to 1.1.2 then you can tell it to upgrade (there are guides to JB 1.1.2 around)

zero. you can always restore

plug your iPod into your computer with it turned, eject the iPod, but keep it plugged in and turned on, hold the home and sleep buttons untli the screen goes off and comes back on, as soon as it comes back on let og of the sleep button but keep holding the home button, iTunes will recognise that it's in recovery mode and make you restore, probably to 1.1.2, but you can force it to install 1.1.1 by holding (i think) the option key when clicking restore, then select the 1.1.1 firmware.