How to jailbreak ipod?

Yes, you can jailbreak your phone but I think you should first get some knowledge about the jailbreaking. So, you should take a look at the jailbreaking techniques at jailbreakme web site. Then you should have firmware 3.1.2 with you. You will have to download it from internet. You need certain things like Computer, iPod Touch WITH 3.1.2 Firmware, iPod cord to connect to computer and Internet Connection.

When I jailbroke my pwn iPhone 4, I was totally nervous but all the process went easily. Now I can use any network connection in my mobile phone and can download songs from other stores other than iTunes store.

To jailbreak, you should get the firmware from the blacra1n web site or jailbreak me. After all the sync is done with your iPod, open blara1n and click on make it ra1n and let blackra1n perform the task.
Now just get those lackra1n applications in your own mobile. Once you get all this applications, your iPod touch is jail broken.