1. Yes, it will restore, but you will have to lose everything,So if you want to get your files onto your ipod touch later you will have to sync everything before you restore it. After restoring, you just have to
re-sync it and you will get everything back again.
2. a.To jailbreak it, you should download redsn0w for mac. to download it, go to
http://www.quickpwn.com/redsn0w scroll down, and download the mac version.
The direct download is here:
http://thebigboss.org/hostedfiles/redsn0w-mac_0.8.zipb. After you have downloaded redsn0w, you need to download the firmware for your ipod touch. to get it, go here:
http://www.felixbruns.de/iPod/firmware/To check which generation your ipod touch is, click the "click here" button in the middle.
To check which version you have
ex. 2.2.1, 3.1
Go to your ipod touch, settings, general, about.
This download will take some time, ~200 MB
c. After you have these 2 downloads finished, run redsn0w, and follow the onscreen directions.
For a step by step tutorial go here:
http://www.quickpwn.com/2009/06/how-to- ... dsn0w.html**I recommend redsn0w because, when you jailbreak it you don't have to restart your itouch. It just installs the jailbreaking packages and gives you an option to install cydia or icy, unlike other jailbreaking methods where you lose all your data**
** When they ask you if you want to install cydia or icy. JUST CHOOSE CYDIA! DON"T CHOOSE ICY, or else cydia won't download anything**
3. There are no risks if you are scared, just make sure to sync it before going through the process, so that you can sync it again if you mess up, to get back your data.
Good luck jailbreaking.