Disclaimer: This method works for many people using iPod/iPhone but you can still get some error message or whatever. The easiest way how to solve it is to enter the error message into Google or into Youtube (this helped me once :p). Than be sure that you made a backup of your files and especially remember, that hacking iPhone/iPod is at your own risk.
Now, first thing to do is to download ZiPhone. Use this link:
http://download.ziphone.org/
http://ziphone.org/
Run ZiPhone, which should look like this screenshot:

For iphone users, click 'Do it all' and it will jailbreak and unblock your iphone (i guess this option will allow you to run any SIM in your iphone than, but I didn't tried because I'm ipod user :p) ipod users click just on jailbreak.
Now let the ZiPhone work a while but it shouldn't take more than 4 minutes. Than iPod restarts and there should appear 2 new icons on your display. The 'Z' is just a link to Zibri's blog where you can read more details about ZiPhone. And Installer is a simple application allowing you to install new apps :p.
I hope this was helpful for you. Enjoy and stay tunned :)
Post Scriptum: Once I got this problem, iPod stucked in the middle of jailbreaking and it threw this error: 'BSD root: md0, major 2, minor 0' watch this video on youtube, it should help you.
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