Want to jailbreak your iPod Touch 4G, iPod Touch 3G, or iPod Touch 2G that’s running on iOS 4.2.1? Well, if you want to, look no further because here’s a guide thanks to iPhone Hacks.

Step 1: Download Redsn0w 0.9.6b4 by clicking here and save the application in a folder named “Pwnage” on your PC’s desktop.

Step 2: Download the correct iOS 4.2.1 firmware file for your device:

• iOS 4.2.1 firmware file for iPod Touch 2G users (iPod2,1_4.2.1_8C148_Restore.ipsw)
• iOS 4.2.1 firmware file for iPod Touch 3G users (iPod3,1_4.2.1_8C148_Restore.ipsw)
• iOS 4.2.1 firmware file for iPod Touch 4G users (iPod4,1_4.2.1_8C148_Restore.ipsw)

Step 3: Double click on the Redsn0w zip file and extract the application to the Pwnage folder.

Step 4: Connect your iPod Touch to your computer, which should automatically launch iTunes.

Step 5: From the ‘Devices‘ section on the left pane of iTunes, select your iPod Touch device. Now, hold down the Shift button and click the ‘Restore‘ button.

Step 6: Navigate to the Pwnage folder on the desktop and select the downloaded iOS 4.2.1 firmware file.

(iPod Touch 4G users: iPod4,1_4.2.1_8C148_Restore.ipsw, iPod Touch 3G users: iPod3,1_4.2.1_8C148_Restore.ipsw, iPod Touch 2G users: iPod2,1_4.2.1_8C148_Restore.ipsw)

Click on the ‘Choose‘ button to let iTunes update your iPhone with the required firmware.

Step 7: Navigate back to the Pwnage folder and launch the Redsn0w application.

Step 8: You will be asked to select the corresponding IPSW file. Click on the Browse button and select the iOS 4.2.1 firmware file.

(iPod Touch 4G users: iPod4,1_4.2.1_8C148_Restore.ipsw, iPod Touch 3G users: iPod3,1_4.2.1_8C148_Restore.ipsw, iPod Touch 2G users: iPod2,1_4.2.1_8C148_Restore.ipsw)

Step 9: Redsn0w will verify the firmware file and inform you if it has successfully identified it. Click on ‘Next‘ to proceed.

Step 10: Redsn0w will now start preparing the jailbreak data.

Step 11: You will now be prompted to select the jailbreak options you would like. A few of these may have already been selected by default. Make sure Cydia is selected and select ‘Next‘ to continue.

Step 12: You will now be prompted to switch OFF your iPod Touch and plug it to the computer. Follow the instructions and click on ‘Next‘ to move to the next screen:

Step 13: You will now need to put your iPod Touch into the DFU mode. Redsn0w will take you through the necessary steps:

(a) Hold the Power button on iPod Touch down for 3 seconds:

(b) Now simultaneously hold the iPod Touch and keep the two buttons pressed for 10 seconds:

(c) Now release the Power button while keeping the Home button pressed until Redsn0w identifies the device:

Step 14: Your iPod Touch should reboot now.

Step 15: Redsn0w will now begin uploading the new RAM disk and kernel.

Step 16: You will now be notified once the jailbreaking process is complete. Click on the ‘Finish‘ button to exit the application.

Step 17: Your iPod Touch will reboot once again (which could take approximately 5 minutes). After it has rebooted, your iPod Touch should be successfully jailbroken. You should find Cydia jailbreak app on your iPod Touch’s home screen.

Note: iPod Touch 4G and iPod Touch 3G users should select Just boot tethered right now from the options window and click Next to use Redsn0w to help you boot back into your jailbroken device on every reboot.

[via iPhone Hacks via iClarified — Thanks!]