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Greenpois0n (jailbreak)
The tool that will soon be released for jailbreaking 3.1 on all devices. Even the iPod touch 3G.
It uses the usb_control_msg(0x21, 2) Exploit.
Here is a video made by Chronic of him proving that the exploit does in fact work on the iPod touch 3G: http://qik.ly/f4M8.