Seriously, if you want to know for sure that that is total B.S., and why it won't work, and also know what it's going to take, to avoid future scams, read the detailed manifesto that Chronic-Dev wrote. He took a lot of time and detail to explain:
1. How and why the old methods to jailbreak iPods and iPhones will NEVER work on the iPod Touch 2g, EVER.
2. Why making fake applications with viruses in them, and uploading them legitamately through the Apple Apps store will NEVER work.
3. Why making a fake iTunes program, or a fake Apps store will NEVER work.
These are the 3 methods most suggested by people that have not read the details in the google code page (or simply did not understand it), which is why he made a simple summary of the 2g jailbreak, and why they need an entirely new method.
http://www.theiphonewiki.com/wiki/index.php?title=Jailbreak_(S5L8720x)
He also explains that the "new jailbreak method" is pretty much "a complete mystery" so stop asking "how long till it's done?" As one astute person at google code page (who's forums are overrun by idiots thinking it's some sort of official "jailbreak news" webpage) worded it like this:
"Q: When is the exploit coming?"
"A: That's like predicting when we'll cure cancer!"
That pretty much sums it up. Just keep an eye on
http://chronic-dev.org/blog/
for your news of when a jailbreak is possible, cause if by some freak chance, that someone does discover an exploit and airs it on youtube, you can bet Chronic-Dev is going to test it out, and detail it on his page, and provide safe virus free links to any and all software required to do the job.