Having used ios 4.x.x on the ipod touch 2g (and unfortunately the iphone 3g), i have come to the conclusion that they weren't exactly designed to be run on those devices. Granted they are only 2 years old, which is relatively short in biological terms, however it is an age in technological terms.
Having done the usual course of finally updating to ios 4 (and jailbreaking) several months ago, it was to my dismay that i discovered Apple's shiny veneer of perfection was shattered on these older devices.
Firstly it seemed to me that ios 4 didn't add any killer new features to these older devices (with the much anticipated multitasking added to the iphone 3gs).
Well, rather than doing complete downgrade i opted for a compromise; instead of embracing the laggy features, i turned it all off.
Spotlight search? Nah
Enabling wallpapers in jailbreak? Gone
Enabling multitasking via cydia? Poof!

Yet it still does not have the feeling of speed that ios 3 did.

So what did i learn form this entire drawn out saga?
Research first, then update!

here is how i jailbroke my ipod 2g:
1.upgrade my firmware from 2.2.1 Jailbroken to Unjailbroken 3.0 (Get 3.0 FW from http://www.felixbruns.de/iPod/firmware/)
2. Jailbreak 3.0 FW
3. upgrade to custom 3.1.1 Firmware from Hackulous. (http://hackulo.us/forums/index.php?showtopic=41726&st=0 you will membership, but its free and i recommend u sign up)
4. you are JAILBROKEN!

OPTIONAL (install cracked apps):
5. go to hackulous repo (from cydia put in: cydia.hackulo.us) and install appsync for FW 3.1.1
5. Reboot i device
6. Install Cracked apps

here i am...stuck on a island....in a sea of unjailbrokenness.
I seriously have no idea what to do. My ipod touch on firmware 2.2.1
And many of the apps on the apps store already require 3.0 FW or higher. But now i am waiting for the dev team to come up with a jailbreak for the 3.1 FW, as it finally enables me to organize my multitude of apps (believe me, i have MANY apps).
I am also waiting for the Tap Tap revenge 3 to come out (according to http://twitter.com/taptaprevenge its going to be out in a week or two) , i know that it will require at least 3.0 FW.
I could just upgrade now to 3.0 but i SO want that app arrangement.
<-------Btw i finally achieved 100% on Extreme!

After a while i have finally figured out how to get the 'about' bit at the top right of the page to finally link to another page. Again i repeat, it was so fiddly!

messed around with some html coding with this blog and i feel something weird is going on...

So youtube works right? BTW i love this vid