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Here is the Jailbreak for the Second Generation iPod Touch: Untethered! (For XP + Vista)
It is simple to Jailbreak you iPod with QuickFreedom. This tutorial is very detailed and not for everyone. If you are even remotely computer savvy then it will be a breeze. QuickFreedom does a good job of explaining everything. If you still don’t know how to, here you go:
1. Click Here to download the installer.
2. Double click the installer now located in your download folder
3. Install QuickFreedom by clicking next through the installer.
4. Open QuickFreedom (looks like the image above).
5. Click Jailbreak.
8. Once both have been installed click Next.
9. Check Install Installer (recommended). Check Use Custom Boot Logo (if you want a custom boot logo).
10. Click Create Firmware.
11. Click Next.
12. Connect your iPod to the computer and put your iPod into DFU mode.
13. Press Start Pre-Jailbreak.
14. Click Next.
15. It will tell you how to restore you custom firmware. Do this by:
16. Your iPod will now restore.
17. After this a iTunes window will open telling you it has been restored and that it is now restarting.
18. iTunes will now ask you to setup the iPod.
19. You have now Jailbroken your iPod Touch Second Generation!
20. Congrats!!!
From. http://www.ipodtouchhacks.com/