With a jailbroken iPod Touch, you can...
A jailbroken iPod touch is basically like hacking it. You can personalize your homescreen with a wide selection of themes and you can also get apps that cost money for free by downloading a package from the software that automatically installs when you jailbreak your ipod touch. I have jailbroken my iPod touch and i ersonally think it looks much better than it was when i got it :P. If you have any questions or if you want me to give you the link to jailbreak your ipod and if you choose for me to send you the link i will tell you a step-by-step guide to getting the package for free apps and how to get themes just tell me :) !
Yes, you can put music on a jailbroken iPod Touch.
you cant
Yes, the iPod Touch with the 2.0 software can be jailbroken.
yes restore it
I guess
Once jailbroken, the iPod Touch's one year warranty is void.
No...
Not without erasing the jailbreak.
it is battery
A jailbroken iPod Touch is certainly legal. However, the act of getting every app in the App Store for free (the ones that require payment) is illegal.
Currently, the iPod Touch 3rd generation cannot be jailbroken because it has a built-in firewall of sorts, a measure taken by Apple to prevent the iPod Touch from being jailbroken. There is a jailbreak software currently being beta-tested, but is not ready for public use.
yes