Lots of ppl talkin on the internet about Jailbreak IPhone and no one is giving enough attention to IPOD Touch specially 16GB the new models with two Nand Chips.
Use the post that shows how to downgrade your IPod Touch h3r3.
Point your IPOD Touch that runs Firmware 1.1.1 to www.jailbreakme.com and click on installer
and you have a Jailbreak IPOD Touch 16GB
Please note that Ziphone.org program does not jailbreak IPOD Touch 16GB, Ziphone.org is mainly dedicated to Iphone although it supports old versions of IPOD touch
Please when this post work for you,just drop me a small comment to know from you guys