Here is the link that iPod Touch Master says is in the description of this video: http://ipodtouchmaster.com/1.1.3_downgrade.zip

Here is a FAQ for Jailbreaking:

1. What is Jailbreaking the iPod Touch?

A: Jailbreaking the iPod Touch means that you break the protection apple has installed on the iPod and allow for 3rd party programs to be installed on it. (It is similar to unlocking a cell phone)

2. Why do I need 1.11 installed to Jailbreak?

A: The iPod Touch was released with 1.11 and iPod Touch hackers were able to find a vulnerability and use it to jailbreak the iPod Touch. The newest software version 1.12 has not been hacked but the work around is downgrading to 1.11 and then using the old jailbreak method.

3. How Can I Jailbreak my iPod Touch?

A: Once you have 1.11 installed check out our iPod Touch Jailbreak page. There are multiple methods to jailbreak but the current one posted on 12/01 described in this post is currently the easiest solution.

4. Can I installed iPhone Apps on my iPod Touch?

A: Yes, After you have jailbroken your iPod check the iPhone Apps post.

5. Where can I find applications and games for my iPod Touch?

A: You can find iPod Touch Games and applications with a google search or check out ipodtouchgames.com.

6. Will iPhone Applications work on my iPod Touch?

A: Yes.

(extracted from http://www.ipodtouchhacks.com/)

(http://www.ipodtouchhacks.com)

(NEW) ipod touch 1.1.3 downgrade:

http://youtube.com/watch?v=YakjwxB3nQU

ipod touch 1.1.2 downgrade
1. on pc go onto touchdev.net
2. click on decrypt firmware
3. go to where it said firmware version and highlight 1.1.1
4. paste onto new internet page and let it download to desktop
5. after download put ipod into recovery mode
6. go back onto itunes and hold shift and click restore
7. find file and double click
8. let it do its thing then done

Recovery mode
1. have ipod touch on
2. hold sleep and home button(dont slide to turn off)
3. hold both until u see the apple and let go of the sleep button but hold home button
then you’ll see it wants u to hook up into ur computer

for a mac shift is option

Step Two: Jailbreaking and Installing Installer:

This is the easiest step of the entire jailbreaking process. Please note that jailbreaking your iPod touch does void your iPod warranty, so proceed at your own risk.

The first thing that you do is, using safari on your iPod touch, go to http://www.jailbreakme.com and scroll to the bottom of the page. Then click on the link that says “Install AppSnapp”, and your iPod should return to the home screen automatically. Do not touch your iPod, and it will automatically shut off. After it shuts off, slide the bar at the bottom of the screen, and you will notice that there is a new “Installer” application.

This installer application is what you will use to install all of the 3rd party apps on your iPod touch. Open the installer by clicking on that icon, and a couple of messages will pop up one of which will be a message telling you that there is an upgrade available. Click the update and install it. After it is done installing, exit installer by clicking the home button on your iPod, and it will refresh.

Now that you have the current version of installer, it is time to download some important applications that will help you in the future when you install more applications. The first thing that you need to do, is open installer, click on the install button on the bottom, scroll down to and click on sources, and install community sources. Once again, and you do this after you install anything, click the home button on your iPod, and your iPod will refresh. Go back into the installer and install the following apps:
System -> BSD Subsystem
System -> OpenSSH
System -> SummerBoard

That’s all that you have to do for now and you are now ready to go to the next step.

If you are having any trouble with this step, just post a comment.

Step Three: Installing iPhone Applications and Others:

Now that you have installed he installer and some important programs, it is time to install the iPhone applications such as mail, Google maps, weather, stocks, notes, and the add event feature in the calendar.

The first thing that you need to do is download the application files (here is the download link: http://filepanel.com/files/13/iPhoneApps.rar).Extract this into a new folder on your desktop. Then you need to install WinSCP (this is the download link: http://winscp.net/download/winscp404setup.exe). After you install it, run it and when it opens, click the new account link. For this, you will need to find your iPod Touch’s IP address. To find this, click settings on your iPod Touch, click Wifi, and after the network you are connected to shows up, click the blue arrow next to it, and that menu should show your IP address. Put this IP address into the Host Name, put “root” into the username, and put “alpine” into the password, and click login. It usually takes a while the first time that you login, and if a message come up that says “abort” do not click anything and wait for it to load. When connecting, you have to always make sure that your iPod shows the home screen and that it never goes to “sleep mode”.

After connecting, look in your iPod’s directory, and click the “Media_sym” folder. After this, click the “Applications” folder. Now its time to transfer the applications. Drag the application folders (Maps.app MobileMail.app MobileNotes.app Stocks.app and Weather.app) into this folder. After this finishes, highlight one of the folders in your applications folder and hit “Ctrl – A” on your keyboard to highlight all of the folders. Right click on one of the folders and click properties. In the permissions space, type “0755″ and then check the box that sets this for all of the folders. After this is finished, click the “..” folder at the top, then double click on the System folder, double click on the Library folder, double click on the Frameworks folder, and transfer the “GMMFramework” folder to this directory. Then double click the “..” folder at the top again, then double click on the “Preference Bundles” folder, and transfer the “MobileMailSettings.bundle” folder into this directory. Then double click on the “..” folder, double click on the Core Services folder, double click on the Springboard Folder and drag the N45AP file here.

Now that you have transfered all the files, you need to turn off your iPod, and then turn it on again, and you should now have all of the iPhone applications on your iPod.

To install other applications, all you have to do is transfer the applicaion’s folder into your iPod’s application folder and change the permissions to 0755, and then reset your iPod again.

Now you are ready to proceed to the next step.

Step Four: Changing the Order of Icons (optional):

Now that you have installed all of the applications you want on your iPod Touch, it is time to change the order of your icons. The first thing you need to do is download iOrder (here is the download link: http://iorderapp.googlepages.com/iOrder.zip). This application will give you the ability to change the order of icons easily. After it has finished downloading, run it. You can change the number of icons on your bottom dock icons from 4 to 5. Then you click on an icon from the left and click the “>>” button to transfer it to your list. Your first four or five icons will be your bottom dock icons (depending on if you chose 4 or 5 in the settings box), and the rest will be the order of icons on the rest of the iPod. The next thing you need to do is click the “Show SSH Config” button. Then you need to enter your iPod’s IP address in the IP address box, and enter “alpine” in the password box. Then click the “N45AP.plist” button in the top left corner, and click the “Save to iPod touch (SSH” option and follow the instructions from there.

Now all you have to do is reset your iPod and your icons should be in the order you want them to be.