How do i Jailbreak or even downgrade my iPod touch 3g with 4.1 iOS?

Alright it's all good, here's what you need to do;

Google search "Ipod touch 3rd gen iOS 4.0 or below" (Depending on what you want, 4.0 is jailbreakable)

Download this and stick it somewhere you know that you'll be able to find it

Plug in your iTouch and open iTunes

Set you device into DFU mode

A.Hold the power/sleep button for 11-13seconds (Past the slide to power off thing)

B.Hold your home button for 5 seconds without letting go of your power button

C. Let go and now iTunes should recognize your device as it's in "Recovery mode"

Now hold shift and I believe it's right click Restore in iTunes while under the tab for your device.

iTunes should have brought you a popup to allow you to select what backup to restore from.

Select the one you downloaded.

Now wait for it to be restored and Viola it should be that iOS.

Hope this helps