Ok before we get started make sure your ipod touch is connected for the whole process.
Ok lets get started:
Step 1.)
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Click this link above and scroll down and chose the iPhone/iPod Touch/iPad dropdown.
Click the:
1g=3.1.2/7d11
2g=3.1.2/7d11
3g=3.1.2/7d11
The reason why u are choosing these downloads is because this is the only download that will work for this program and its great!
Note: To know if u have a 1g, 2g, or 3g:
1g= Not able to play music out loud and Flat backside.
2g= Able to play music out loud and Curved Backside and that is a 8 gigabyte
3g= Able to play music out loud and Curved Backside and that is higher than a 8 gigabyte

Step 2.)
Ok so now you have the link. Open up Itunes and have your Ipod Touch connected. Go to the Summary page where your able to sink it or click on the Device's name For example:
"Austin's iPod" click on that it wont say Austin's iPod. It will say The owners name iPod.
Ok now press and hold shift and click on restore and it shuld come up with ur download from where you downloaded your iPod Touch 3.1.2/7d11 download.
It shuld verify and then it shuld setup as normal. When it is done restoring sync it normally and dont update when it ask you too.
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Click this link above. When it is done restoring and backed up. Click the download for windows/mac/linux on the link i just gave to you above.

Step 3.)
When your done with all this cick on the download u just downloaded and Open it up and it shuld recognize your device. from there once it is recognized just click Jailbreak and if completed right. It will say Jailbreak Succedded!.
ok NOW ur ipod shuld be on an Aurora screen with a white middle line going across and it shuld be loading up.
THERE YA GO! Hope i helped out a lot of people with this and have any questions, just pm me on here. Ok guys seeya