They have kept it quiet long enough.  The iphone-dev team have some great news posted on their blog relating to what redsn0w actually is.  Previous speculation was the ultimate iPhone 3G unlock (bootloader exploit).  Others thought it was a prank, but we confirmed that in fact, redsn0w.com belonged to the fabulous devs.

MuscleNerd confirming that redsn0w is infact - related to the iPod Touch 2G

iPod Touch 2G jailbreak.  Finally, FREEDOM!  You’ve all been waiting for it, and now for those of you who can’t wait for them to release it (or still don’t know what jailbreaking is!), take the time to review over the excellent advantages there are to jailbreaking.

We’ll be keeping everyone updated with the iPod Touch 2G jailbreak.  It may not be today, but atleast we know it’s done.  Stay tuned, though – as soon as it’s out, we’ll have the guide:  a step by step just for you.