1. Export your iTunes library
  - You *need* to export your iTunes library to an XML file first. Libraries that have been touched by a 
    higher iTunes version can not be used in an earlier iTunes version.

2. Downgrade iTunes
  - Since you need iTunes 7.7 in order to have 2.0, you need to downgrade and get iTunes 7.5 back.
  - First, uninstall iTunes 7.7. Once done, it will ask you to restart your computer. Do it.
  - Once restarted, download iTunes 7.5 [1]
  - In 7.5, select Import Library and pick the previously exported library XML file. 
  - If it doesn't run, in Windows, delete the "iTunes Library.itl" file. Now it should work.
  - You can find the XML file and your iTunes Library files under %appdata%\..\My Documents\My Music\iTunes Music\

3. DFU Mode
  - This mode is a little tricky. First, connect your iPod. iTunes will pop up and say it won.t work with 
    this version of iTunes. That is ok. You just need to put it into DFU Mode.
  - Turn up the sound on your computer. Next, turn your iPod off. Hold power and home for 10 (ten) seconds (as 
    in 1001, 1002, 1003.). Let go of the power button while still holding the home button. Hold this until you 
    hear your computer give the "USB Connected Sound" ("Ba Dum" I think). Then let go. You are now in DFU Mode.
  - Now in iTunes, hold Shift and Click restore. Select the 1.1.4 firmware [2]
  - Let it do its thing.
  - If you get an error when you restore, use ZiPhone to get your device out of restore mode by running the 
    program and going to Advanced Features, Normal Mode.
  - Once done, you should have firmware 1.1.4 on your iPod again. Jailbreak instructions are here [3]


[1] http://appldnld.apple.com.edgesuite.net/content.info.apple.com/iTunes7/Win/061-3902.20071105.G6edS/iTunes75Setup.exe
[2] http://appldnld.apple.com.edgesuite.net/content.info.apple.com/iPod/SBML/osx/bundles/061-4312.20080226.Btu45/iPod1,1_1.1.4_4A102_Restore.ipsw
[3] http://rc.vc/files/ipod/docs/jailbreak-1.1.4.txt