If you don't understand the title, and especially if you don't have an iPod Touch,
.
There are a lot of applications written to run on an iPhone. The iPod Touch can run these, too. You do have to "downgrade" the iPod to version 1.1.1, but you can do this with LEGAL firmware and the actual iTunes software, so nothing hackerish happens when you downgrade. Steps beyond this however could put you at risk.
There is a way to force a restore of an iPod Touch, which I haven't had to do. What I understand the process as being is to hold down the top (power/sleep) button and home buttons at the same time, then about 10 seconds later the screen will go dark and then you need to let off of the top button and keep holding home. iTunes should recognize that the iPod needs a restore, and you can take it from there.
Downgrade Procedure
Download the 1.1.1 firmware directly from Apple
here. If you distrust the link, find the iPod Touch firmware at the Apple download site, specifically 1.1.1. The filename should be iPod1,1_1.1.1_3A110a_Restore.ipsw.
Run iTunes and go to the iPod screen (after synch is done). Hold down option (alt on Windows) while clicking the "Check for Update" button on the iPod's Summary screen. This will let you choose a firmware file. Select the file you downloaded (the .ipsw file). iTunes will take a while downloading and installing the firmware, and the iPod will reboot (which is expected). It should come back, prompting you to update the firmware to the current version. DO NOT DO THAT. Your music, videos, etc., should still be present on the iPod.
Dangerous Part
It's at this point where you have to take a risk of hacker intrusion. Do the following only if you trust the website in question and the application it provides. On the iPod, use Safari to head to
JailBreakMe.com and near the bottom, click the line saying "Install AppSnapp." This takes but a moment on a high speed WiFi connection. At this point, you should have a new icon for "Installer." Click that button, let it update itself if necessary, then click the button on the bottom of its screen with the [+] for Add Packages. This should show a menu of folders. Choose the Tweaks (1.1.1) folder, then inside it, find "OkToPrep." Click that, and the screen will show a summary with a "Install" button in the title bar at the top, right side. Again this takes but a moment.
At this point it is good to press the home button, perhaps even sleep the iPod and use the slider to go back to your menu screen.
NOW you let iTunes do its 1.1.2 firmware upgrade. This takes a while. When all appears to have settled, eject the iPod and then close iTunes.
Jail break at last!
Finally, you are ready to "Jailbreak" the iPod. Yet another program package from
here (RapidShare site) once unzipped gives you a windows.bat to double-click. On a Mac, double click on jailbreak.jar.
You want to check the box for SSH, and want to choose some other root password than the default "alpine" since this could create a "back door" into your iPod otherwise.
Ultimately, the iPod will reset itself a couple times, probably activating iTunes and making iTunes complain about the iPod disappearing. No worries, that will happen.
After this, you will have 1.1.2 with your files still intact, and have the Install application which you may now look into the Games folder and others. NB: You probably want some interface customization for when you have so many apps installed you need to scroll your screen. Try something that sounds good from Themes (SummerBoard).
If you want all this shite back off your iPod, use the "Restore" button in iTunes when viewing the iPod "Summary" tab. You will be spending some time re-synching your library etc., etc. back onto it.