iSpazio

To view flash video files on Safari, download files from Safari, get free lyrics for your songs, download YouTube videos directly on your iTouch, get the source:
www.ispazio.net/ispazio.xml
Go to Install/ iSapzio Apps
Download the apps: iLyrics ENG, iNetServices, MxTube, Safari Add-on Features.

A Great Source

A great source that I have found is:
http://123locker.com

Moo Cow Music

'Moo Cow Music' is an excellent producing unit for music instrument related apps.
You can create a band (iBand)and play instruments such as the guitar, bass guitar, piano, drums and a lot more!

Good Applications

Terminal - Term-vt100
Ants
iTerminal
iRemote
Services (especially this)
SkySMS
iSkype
Finder - mobileFinder
AMaze!
BlockPuzzle
iQuickBlock

Recommended iAppCat Sources

http://iappcat.com/r/7866
http://iappcat.com/r/21907
http://iappcat.com/r/30503
FYI:
The last one is my one and its fairly new so there's hardly anything on it.

Viewing the internal stuff of the iTouch

Do you want to copy some files onto your iTouch without using iTunes?
Here's the answer.
Firstly, you need a jailbroken iTouch,a Windows PC (or maybe Mac, I'm not sure) and a working WiFi connection.
On your iTouch, go to Settings/ General/ Autolock
Click 'Never'.
On your iTouch, go to Installer.app
Choose Install/ All Packages
Find OpenSSH and install it.
In the unlikely event that you can't find it, add the source http://123locker.com and then try again.
Once OpenSSH is installed on your iTouch, (no icon will appear) go to the internet on your PC and find and download the free software WinSCP. Install it on your PC.
Once installed, go to the WiFi network settings on your iTouch and press the small blue arrow next to a connected network.
Copy the IP address there word for word and type into WinSCP. (it will ask you to when you open it)
WinSCP will also ask you for a username and password. The username is root and the password is alpine.
Once ready, connect you iTouch to the PC, close iTunes if open and click on Login in WinSCP.
You are done.
The iTouch internal hidden folder (flash memory folder) will open up.
Enjoy editing, but be careful! Don't delete a file that is necessary for the iTouch to function properly.
Good Luck!

Recommended Emulators

NES
psx4all or psx4iphone
snes4iphone
gameboy4iphone
geneses4iphone (Sega)
gpSPhone

Changing Calculator and Weather backgrounds

Your Risk

Everything you do is at your own risk. If your iTouch gets spoilt, I will not be held responsible.

Recommended Apps

Installer, Mail, Maps, Weather, Notes, Stocks, Finder, Customize, SMBPrefs (SummerBoard), BossTool, iSkype, SkySMS, NES, NES Roms, psx4all, snes4iphone, gpSPhone, T4Two, ContraSense, 4Balls, Sketches, iCave, iCopter, iBand, Guitarist, PocketGuitar, GuitarTuner, Pianist, Drummer and a lot more.

Important Stuff

Install BSD Subsystem, Jiggy Runtime, ZodTTD Required Library, MobileFinder, Open SSH and SUID Lib Fix.
There is a lot more, of course.
All of this will be available to you if you add my sources.

Sources for SkySMS, ROMs, emulators, other games, software and a lot more

XWaves (for SkySMS) - http://irepo.xwaves.net
ZodTTD.com Releases - http://zodttd.com/repo
iPhone Roms - http://repo.iphoneroms.com

Using Customize

Search for Customize in All Packages and install it. For extended features, install SummerBoard from All Packages as well.

Get more space for your apps

Search for BossTool in All Packages on the Install tab of Installer.app. Install it.
Click on it, Free Disk Space, then Relocate Fonts. (and Apps and Ringtones of you wish)

Get Apple's January Software Upgrade apps free

Open Installer, select the Sources tab, select Edit, then Add:
http://ipodtouchmaster.com/files/repo.xml
Refresh sources
Select the Install tab, find iPhone 1.1.4 Applications and install iPhone 1.1.4 Apps.
This will install all the apps as well as the wiggle feature.

Jailbreaking iTouch 1.1.4

Download a software called ZiPhone from http://download.ziphone.org/
This software is available for Win and Mac users only.
Plug your iTouch in and restore it through iTunes. This will wipe everything off your iPod and update it. Make sure it is updated to firmware version 1.1.4 only.
Leaving you iTouch plugged in, open ZiPhone and choose the second option: Jailbreak.
Many scary things will happen on your iPod but fear not. After it is done, you will find the Installer app on your iTouch home screen.

Note: This is to be done entirely at your own risk.