Ok first thing first, you need to download the HackPack.
In there is necessary things I use in the video. If you are on XP you must install .net frame work. ( the dotnxfx file) vista users don't have too.
Hackpack includes boot loader files, .net fram work and finally DFU.ZIP
This Video explains how to unlock or pwn your iPhone 2G (original one). You can use this phone with any carrier once unlocked. It must be GSM. You don't loose the App store or iTunes music store.
You are going to also need winpwn, which can be found at winpwn.com
Second, You are going to need an IPSW file.
iPod touch Users.. download this one.
(this includes appstore and itunes store)
Mirror: http://uploaded.to/file/ih0z65/iPod1 ,1_2.0_5A347_Restore.ipsw
When going into DFU you cannot use the command DFU in the video if you are an iPod Touch user.
If you get Error 6, try another DFU method.
For iPod Touch users use this to go into DFU. iPhone Users can use this as well.
Do not use ZiCrap or ZiPhone.