On January 30th, the iPhone Dev Team released RedSn0w into the wild for daring testers and jailbreak fanatics. It is a tethered jailbreak, which means that every time you reboot you must enter dfu mode and send commands from a Mac/PC. Sleep Mode does not count as a reboot.
You can head over to redsn0w.com to try it out, and there is an awesome tutorial over at ipodtouchfans.com
