hmm still no joy with the removal of the directory.

now I have a 3.1.2 1g touch, which with iTunes 8.2 I can revert to 3.0.
I can then use resn0w 7.2 to break.

So I have a 3.0 again jail broken. Then use Pwnage to pwn iPod1,1_2.2.1_5H11_Restore.ipsw which works fine.

Then I try to load it into my ipod in DFU mode via iTunes 8.2 and it uncompresses and then fails to install with "error 20"...
I'm starting to think I have a special 32Gb ipod which can't have 2.x software back on it.

After it fails with error 20 the only think I can do is restore it to 3.1.2, then revert to 3.0 and get resn0w out again...!

madness...