JailbreakMe 2.0 star is a userland jailbreak tool which means that you just need to point the safari browser of your iPod Touch to http://jailbreakme.com and it will do the jailbreak for you!
Guide to Jailbreak iPod Touch 3G/2G using JailbreakMe 2.0 Star
Backup all your data on the device using iTunes.
Update your iPod Touch 3G, 2G to the latest iOS 4.0.1 firmware with iTunes. Download iOS 4.0.1 here.
Open Safari on your iPod Touch and navigate to http://jailbreakme.com
“Slide to Jailbreak” to begin the jailbreak process.
JailbreakMe will download some files it requires for jailbreaking.
Once the download is completed, it will automatically start the jailbreak process. Wait for it to complete.
Once the jailbreaking completes, you will be greeting with a message saying “Cydia has been added to the home screen”
Voila! You now have jailbroken your iPod Touch on the latest firmware! Update 1: If JailbreakMe.com doesn’t work for you then you can try out this alternative link: http://jailbreakme.modmyi.com/ Update 2: If you are looking to jailbreak iPhone using JailbreakMe 2.0 Star, here is the guide. Update 3: If you are looking to jailbreak iPad using JailbreakMe 2.0 Star, here is the guide.