The terms of the iPod Touch's EULA appears to prohibit unauthorized modifications, viz;

"Except as and only to the extent permitted by applicable law, or by licensing terms governing use of open-sourced components included with the iPod touch Software, you may not copy, decompile, reverse engineer, disassemble, attempt to derive the source code of, decrypt, modify, or create derivative works of the iPod touch Software, iPod touch Software Updates, or any part thereof. Any attempt to do so is a violation of the rights of Apple and its licensors of the iPod touch Software and iPod touch Software Updates. If you breach this restriction, you may be subject to prosecution and damages."

So, it appears to me that jailbreaking the iPod Touch contravenes the EULA, and therefore also contravenes CNET's Forum Policy on illegal activity.

If you feel I am misinformed or have misinterpreted the EULA, please feel free to contact me through my profile email option, quoting where this jailbreaking is allowed about Apple.