Jailbreak iPod Touch 3G / 2G (MC Model) on iOS 4 Using Sn0wbreeze V1.7 [How to Guide]

Update: VERY IMPORTANT Now iH8sn0w has posted instructions and successfully working for Jailbreaking iPod Touch 3G and 2G (MC Model), also iPhone 3GS (New Bootrom), check the guide posted here.
iH8sn0w has just updated his tool to Sn0wbreeze V1.6 so he give the ability to Jailbreak iPod touch 3G / 2G (MC Model) (Update: better to wait for iH8sn0w) and iPhone 3GS New Bootrom, This new version only works for people who got are on 3.1.2 or got their 3.1.2 SHSH Blobs on Cydia Server.

If you are on iOS 4 and saved SHSH of 3.1.2 on Cydia Server, then you can Downgrade iOS 4 to 3.1.2 and then Jailbreak using this Sn0wbreeze V1.7, guide posted here.

It's the same steps as Sn0wbreeze V1.6 so there's no need to post the guide again, you can follow the guide posted here to Jailbreak iPhone 3G / 3GS and iPod Touch 3G / 2G Using Sn0wbreeze.

Download Sn0wbreeze V1.7 for Windows
Download iTunes 9.2 for Windows and Mac
Download iOS 4 original Firmwares
Download .NET Framework 2.0 (Needed to Launch Sn0wbreeze)

Update 1: Stop for a bit and don't continue the jailbreak if you are on iPhone 3GS or iPod Touch 3G.. iH8sn0w is going to fix something
Update 2: It's ok now, You can jailbreak iPhone 3GS or iPod Touch 3G Using the instructions posted here.
Update 3: for iPod Touch 3G and 2G (MC Model) should wait for iH8sn0w to release iBooty that works for them..
Update 4: Now iH8sn0w has posted instructions and successfully working for Jailbreaking iPod Touch 3G and 2G (MC Model), also iPhone 3GS (New Bootrom), check the guide posted here.