Ok, so I’ve upgraded my iPod Touch to 1.1.3 now and it works! It does appear that you need to have a freshly jailbroken iPod though. I had to restore mine to 1.1.1 after the first time (it went into recovery mode) but it worked after I jailbroke that and installed oktoprep.

Some apps like Customize and Summerboard do not work properly but I imagine there will be a fix for them soon.

Screenshots will follow shortly

(Update - 11/4/08) Long overdue I know but here are the screenshots

Cheers,
Mitchel