You will have to downgrade your firmware first, 1.1.3 jalbreak is the most popular but there are jailbreak techniques for your 1.1.4.
Of course, I can't give you any links as the legality of the technique is questionable. I personally just think you break Apple's End User License Agreement.
Also, the App Store and iPhone firmware 2.0 arrives on the 11th July. You can then download free, and commercial, software to your iPhone/iPod Touch on the fly. Homebrew and community made software on the Jailbroken Installer app is usually of poor quality and mostly useless anyway.
I saw no benefits in jailbreaking the iPod Touch, you have the latest model and should have the January Software Update anyway. Wait until July 11th.