iPodTouchedMaster shows how one can easily SSH into their iPod Touch with all firmware! To SSH is the ability to hack into your iPod Touch's file system. First, your iPod Touch must be jailbroken. Next, you'll have to open Cydia. Click "Featured Packages" or search for the terms "Open SSH" (it will be listed under Console Utilities & Daemons). When you have OpenSSH click on it and click 'Install' and 'Confirm'. After this is finished, click return to 'Cydia'. This may take a lot of battery power so in order to handle this get 'BossPrefs' which is also in 'Featured Packages' of Cydia. After getting 'BossPrefs' go back to the homepage and click on 'BossPrefs'. In BossPrefs you can toggle SSH 'on' and 'off' to save battery when you are not using SSH.
Now that you have SSH on your phone, you need SSH on your computer. Now you need an SFTP client on your computer. Now reboot your iPod so SSH can take effect. This video recommends you use WinSCP and download it online (the newest version available). When the download pops up click 'save file' and open file, run program, and download WinSCP on your computer. Now connect your iPod to WinSCP. Open WinSCP on your computer. Your host name is your IP address (find in iPod settings, username is 'root' and password is 'alpine'. File protocol will be SFTP and check off the box that says 'allow SCP failback). Click 'Log in'. A Security Breach will pop up so go to your iPod, open BossPrefs and turn SSH on and off for a couple of times. Now, reboot your iPod from this screen. Make sure your computer and iPod are both connected under the same Wi-Fi. Now, click "update" and when Authentication failed comes up click 'Reconnect". Now, you are in your files on your iPod with Library and Media. Now, you have successfully SSH into your iPod!