The iPhone Dev Team has successfully jailbroken the iOS 4.1 on iPod Touch 4G using the SHAtter exploit discovered by pod2g. They ported the SHAtter exploit into PwnageTool using with they restored the iPod Touch 4G to jailbroken iOS 4.1 custom firmware. The iPhone Dev Team have confirmed that a new iOS 4.1 jailbreak tool is coming soon.
Here is what they said about this:
In the meantime, weâ€™ve put @pod2gâ€™s exploit into a beta version of PwnageTool to test the waters. The SHAtter exploit was enough to convince the iPod touch 4G to restore to our custom IPSW. The successful result is shown below! Itâ€™s all working: customized Preferences to show battery percentage, Cydia, root shellâ€¦the works!
Although PwnageTool was a useful first test of a full iPod 4G jailbreak via SHAtter, itâ€™s really overkill compared to the faster tools being developed. Its main use in PwnageTool will be for those with iPhone4â€™s, to allow updates while preserving the baseband and ultrasn0w carrier unlock. In any event, this is another exciting time for iPhone and iPod touch usersâ€¦the cat and mouse game continues!
Watch the video from the below Youtube link.