iPhone Dev team released Redsn0w Lite for iPod Touch 2G but the only beneficiaries were Mac iPod owners depriving Windows iPod owner. However, some kind gentleman took up the task and written a very detailed tutorial to jailbreak the player from Windows too. All it takes is 12 steps to make it enter the world of Cydia. The hack requires to install LibUSB which works fine with Windows XP but Vista users may want to install it in compatibility mode.
Full tutorial over here.