In a video posted to their blog, the Chronic Dev Team (the guys behind all kinds of iOS hacks) have shown an iPod Touch 4G running iOS 4.1 being jailbroken using PwnageTool. Using the latest SHAtter exploit, the video shows a custom firmware installed along with the usual Cydia app store and root access.
This video potentially points toward a release of PwnageTool and greenpois0n sooner rather than later, with things like the UI and UX being tidied up.
Whichever tool you decide to use, hopefully it won’t be too long until you’re jailbreaking your iOS 4.1 device at will!
SHAtter exploit iPod touch 4G[iDB]