Over at Toc2rta, iPhone hacker Niacin has announced a betatest for his iPhone/iPod touch jailbreak effort. To join, you must point your irc client to irc.toc2rta.com and connect to #betatest. 1.1.1 testers only and you will need some working version of iPhuc.
I'm not personally familiar with the current state of his hack so Caveat Hacktor and all that. Good luck, and bring us back a jailbreak.
Update: 1AM: Niacin announces: "I would just like to 100% confirm we cracked the itouch" for a tester whose handle is podometer. He further confirms that his hack is based on Dinopio's hack, adding some chained calls to get around OS issues.
Update: 1:15AM: Ryan Block of our sister blog Engadget is now trying this out on his own iPod touch.