I have been waiting for some time to jailbreak my son's iPod because it was a 3 generation one (the 64GB one). I could have used the older jailbreaks but it would have required tethering and for me that was not a option. Well I'm happy to say there is a new jailbreak for those who have the 3 generation. The jailbreak is called Spirit Jailbreak. Its pretty easy to do and they seamed to have worked out the bugs they had.
Ok here is my son's ipod now
He loves it and when you slide to unlock it the slide is a gun that shoots
Here is a pic of a jailbroken iPad
Edit: Before you jailbreak please read Jason's comment below: CLICKY