Step 1:
Goto iTouch/iPhone while on 4.0 Firmware and goto Safari web browser.
Step 2:
Goto search bar and type in You must login or register to view this content.
Step 3:
Drag the slider and allow the jailbreak to happen.
Step 4:
After jailbreaking goto.... Cydia > Manage > Sources > Edit > Add > cydia.hackulo.us
This will now allow you to install installous ect. to get free apps.
Then to get all sources ect. goto... Cydia > Sections > Repositories > Steffwizz > Install
Now you will have all sources.
So if & when I buy my iPod Touch (newest 8gb model), will it come with 4.0.2 version installed already? I saw this downgrade video but not sure how it works.. Noobish Q- Why are there two screens /PC? You need two o.O?