How to Reset your iPod Touch from a jailbroken state
In this video from iPT2gGeec we learn how to restore your tethered or semi tethered iPod 2G jailbroken device. To do this, open the Red Snow application. Go to Step 3 and click upload DFU file. Unplug your iPod for 2 seconds and plug it back in. You should get a white screen. Now exit the GUI and iTunes should pop up. Click on Restore button after the message says iPod has been found in Recovery mode. This is the only way to do this. If you don't get the white screen, put it back in DFU mode and reupload the DFU patch. Also if iTunes doesn't open up by itself, just go ahead and open it up yourself. If you don't do it this way you will get errors.