This tutorial should work for most people having trouble. Credits to Ezra for having the first real thread on this, but this is just to help iPod Touch users who need the GUI but can't do it following those directions.
Download
http://xs1.iphwn.org/releases/QuickPwn.zip AND
http://outgoing.ipodtouchfans.com/?d...tQd25HVUkuemlw, and extract them both to a folder on your desktop
1. Download or find yourself a copy of iPod1,1_2.0.1_5B108_Restore.ipsw (Or iPhone1,1_2.0.1_5B108_Restore.ipsw for iPhone 2G, and iPhone1,2_2.0.1_5B108_Restore.ipsw for iPhone 3G)
2. Put your iPod to DFU mode, and restore to 2.0.2 through iTunes
3. Copy the 2.0.1 firmware you downloaded above to the QuickPwn tool folder on your desktop
4. Plug your iPod in, but close iTunes when it pops up
5. For safety, open the task manager and close all processes that contain the words "Apple", "iTunes", or "iPod"
6. Run the QuickPwn-Bundle-Release.exe
7. Select "iPod Touch" from the GUI that pops up (Or "iPhone" for 2G, "iPhone 3G" for 3G)
8. Find the 2.0.1 firmware file when the next step appears
9. Follow the instructions given to you in the command line code. Wait until the window closes automatically to unplug your iPod