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Step 1: Launch redsn0w.
Step 2: Browse for the firmware you downloaded. It should process and then finish. Click next. (links above)
Step 3: Select "Install Cydia"
Step 4: Hit next and then plug your device in. When the device is in your computer turn it off (slide to power off)
Step 5: Hit next
From here you will need to put your device into DFU Mode. You can either follow my tutorial below OR follow the tutorial in redsn0w.
Step 6: Hold the power button for 3 seconds (DO NOT RELEASE THE BUTTON)(power on the device)
Step 7: When you see the apple logo, hold the home button (you should be holding the home and power button now) until you see a black screen.
Step 8: Once you see the black screen release the power button but keep holding the home button for 15 seconds.
Step 9: Let your iPod sit and you should see a bunch of code come onto the screen. After that, you should see a pineapple followed by a loading bar. Once it fully loads, you have succesfully jailbroken your device! Look on your second page of Apps for Cydia.
Thanks for reading my tutorial!