Our sister site, CentralGadget.com, has covered that the iPhone Dev Team has managed to jailbreak the iPod touch 2G. Integration into PwnageTool is a work in progress.
This is great news for those that have already fired their iPhone, in favor of the newer (and faster) iPod touch (combined with Wi-Fi slinging from your favorite smartphone). It also means that, once again, jailbreak solutions will be available for all current versions of all iPhone OS devices.