iPod Touch 3G was launched a couple of months back with improved Processor and Graphics Capabilities (32Gb/64Gb). But along with that, they came with the 3.1 Firmware which prevented Jailbreaking.
A sort of temporary (tethered) Jailbreak is now available for iPod Touch 3G. Jailbreaking an iPod unlocks a lot of possibilities such as Custom Themes, some cool Apps and ahem *cracked games* too.
Blackra1n RC2 now supports Jailbreaking of the iPod Touch 3G 8Gb along with 32 and 64Gb variants.
Follow this guide to Jailbreak your iPod Touch 3G :
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(PC Users)
1. Connect your iPod Touch to the PC and make sure its detected by iTunes.