iH8sn0w brings Universal Jailbreaking solution for iOS4 that lets you Jailbreak iPod Touch 3G, iPod Touch 2G, Jailbreak, Unlock iOS 4 iPhone 3G, 3GS on iOS 4.
Sn0wBreeze v1.7 lets users create a custom iOS 4 to jailbreak all iDevices.
Note: In order for this to work effectively, iPod 3 must be on OS 3.1.2 or you must have saved SHSH blobs of OS 3.1.2 for your iPod Touch 3G.
Sn0wBreeze Device Compatibility List
- iPod Touch 3G iOS4 (if & only if) they are running firmware 3.1.2 or you’ve SHSH blobs for 3.1.2 (needed for downgrade)
- iPod Touch .. Read Further »
Apple seeded 

Thanks to the small jailbroken hack, now its possible to connect an 