This an update for iPod Touch 2G Jailbroken by the iPhone Dev Team posted yesterday. A video by Dev Team member Muscle Nerd proving the hack works was up and ready for viewing.
redsn0w, quite simply, bypasses the Apple anti-jailbreak protection that causes the device to stop booting up if a jailbreak were detected. It opens up a whole slew of applications that are not, or will never be, offered through the “official” channel, the App Store. For the video