Hopefully somebody can direct me or help me out with this issue:
I already had the PSFreedom jailbreak working perfectly on my Ipod Touch 1G, I was able to install PKG and all. Until, I upgraded the 2 files from PSPfreedom located under private/var, the android.img.gz and the zimage files, the jailbreak wont get passed the first sequence, reading "Multi-touch calibration data installed". In other words, I don't get to see the penguin to turn on the console and followed by the power button and eject.
I already tried reinstalling the ipod firmware and reinstalling the jailbreak but it wont work anymore.