What firmware do you currently have installed? You have to pay for firmware 2.2.1 if you have an older version on the iPod Touch.
You could try using Pwnage and manually selecting the firmware bundle (I think the firmware bundle is in a different location).
QuickPwn looks for the firmware here: ~/Library/iTunes try moving the firmware to that location and run it again.
At a guess - 2.2.1 (2G): iPod2,1_2.2.1_5H11a_Restore.ipsw![]()
You will have Installer & Cydia installed on your Apps pages.
Cydia is used for installing jailbroken apps & hacks...
I have the Quickpwn 2.2.5, this is the one to be used correct?
Is there a jailbreak for Nano's as well?
Yes, that's the latest version, are you sure that you have Gen1 not the Gen2?
Good luck, install openSSH and then you can access the system root folders on the iPod.
Don't use "Installer" they don't have anything decent, use Cydia.