Here is a great video on how you can SSH into your iPod.
SSH is a program that allows you to get into your iPod Touch through your PC. You can access your iPod's files with this program, not to mention, the process is wireless, no USB connection needed. By using SSH, you have the ability to install, rename, or delete files that can be found on your iPod. You can also use this program to add themes, ROMs, apps, etc to your device. This will definitely come in handy when you are experimenting with your Jailbroken iPod Touch as well. This works for both the 1G and the 2G iPods.
Click 'I Agree' to view the video tutorial.
If you have any questions, post them here. Hope it helps. :)