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Then i downloaded a theme from Cydia i'm not sure what went wrong. Now I'm stuck in safe mode. I've done all the recommended steps to getting out of safe mode, ... etc.

No matter what it is that I do . It remains in safe mode.

I really don't want to have to restore my iTouch using iTunes.
so I decided to ask the recourseful people of NGU to find out if there are any alternate methods.

-Thanks

It seems like you downloaded a theme that is incompatible with 4.0 (or that's my best guess).

Go into Cydia, then go to manage>packages>and find the theme/app/package that you last installed right before SpringBoard crashed. Go into that package, hit the "Modify" button at the top right, and hit "Remove". That will uninstall the package. Now just respring and hopefully SB will be back to normal

Same thing happened to me....But I was on a iPod Touch 3g firmware 4.0... I delete every single package I downloaded(almost 10...just re jailbroke it) and nothing worked... I just restored it....and for some reason it didn't let me re-jailbreak if you restore a back-up! Has any one encountered this problem on 4.0?