iH8sn0w has successfully jailbroken iPod Touch 2G running the latest iPhone OS 4.0b1 and has posted the video link on twitter showing Cydia on jailbroken iPod Touch OS 4.0beta1. Currently, he is working on a pwnage Tool bundles for iPod touch 2G and iPhone 3GS, which can be used to jailbreak iPhone and iPod touch on the latest 4.0 firmware.

Jailbroken iPod Touch 2G on iPhone OS 4.0 Video
There is no probable ETA but we may expect it soon.
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