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Sn0wbreeze -
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Find the corresponding ipsw for your device here -
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Use Sn0wbreeze to put your iPod in DFU mode.
Now just restore your iPod/iPhone/iPad1G with the ipsw sn0wbreeze creates by pressing shit + click on "Restore" in iTunes.
Done! Remember, this is a tethered jailbreak(4G is only tethered, to my understanding), so you'll need to use iBooty to boot your iPod if you turn it off
Get iBooty for iPod/iPhone 4G here -
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If you get any "16xx" error, download iREB here -
https://hotfile.com/dl/108923557/18f7493/iREB-r4.zip.html
And use it to put your device in a pwned state to install the firmware