DISCLAIMER:
I don't have a Windows machine in front of me, so I'm doing this from top of mind...
1) Download and install WinSCP and putty (
http://www.winscp.net and
http://www.chiark.greenend.org.uk/~sgtatham/putty/ respectively)
2) Follow the instructions from here:
http://hackint0sh.org/forum/showthread.php?t=15849 or here:
https://forums.macrumors.com/threads/388964/. They are both pretty much the same instructions for 1.1.2 users, for activated and non activated iPhones (should be mostly similar for touch...i think)
3) When you get to the part that says install oktoprep don't bother. The source appears corrupt currently (as of 25Nov2007 0500 GMT)
Instead, install the BSD subsystem and openSSH. I needed to reboot once or twice before I was able to SSH to the iPhone.
4) Using putty, put the IP address of your iPhone/Touch in the server field, and use "root" for the username, and "alpine" for the password. It'll take 30-45 seconds on the first login, be patient...
5) Once logged in, open up winSCP and use the same IP address, username, password settings. Connect the the iPhone/Touch and copy the contents of the oktoprep.zip file to the device. (the sbin folder, and mknod file)
6) Switch back over to putty, and type the following command:
/sbin/mknod ~/Media/disk c 14 1
I don't think the program provides any reasonable output such as "success"

So assume it works...
7) Close putty and WinSCP.
8) Resume the instructions you were following...Install 1.1.2, run the jailbreak.jar file (on windows, its the windows.bat file)
That should work, unless I forgot something. If it doesn't just try downgrading again. I spent 4 or 5 hours last night and another hour this morning before I succeeded in jailbreaking.
FAQ:
Q) How do I find my iPhone/Touch IP address?
A) If you don't know the IP address of your iPhone/Touch you can find it by checking your router's DHCP table, or by trial and error. I downloaded the vt100 terminal and ran ifconfig -a.
Q) I can't run the "/sbin/mknod ~/Media/disk c 14 1" command
A) Its compressed inside the ZIP file inside a folder called sbin. Extract the folder from the ZIP and place it on the iPhone/Touch