Well, iPhone-dev.org has done it once again they've jail-broken the latest iPhone firmware v2.1, they've managed to do this without having to patch iTunes 8 at all, so this means no issues with updating iTunes for the moment at least.
The modding team over at iphone-dev.org did at first believe a patch would have to be applied to iTunes 8 due to apparent security measures that Apple has implemented into the software to prevent unauthorized firmware from being loaded into untouched devices.
iPhone-dev.org does however state that they are not sure if the release will work with the latest iPod touch due to none of the development team having the device at the moment.