11/09/2007, 11:00am, EST
Friday, November 9th
Alleged photo of v1.1.2 jailbreak surfaces
A photo surfaced today suggesting that a 'jailbreak' was already developed for Apple's new iPod touch firmware even before its official release yesterday. Apple on Thursday released its iPhone and iPod touch v1.1.2 update, bringing additional language support alongside several other features/fixes. The previous update from Apple, v1.1.1, essentially 'bricked' -- or rendered useless -- most hacked iPhones that made use of 'unlocking' techniques to make use of non-AT&T cellular service. Hackers flocked to the iPhone after the device launched in late June, developing clever ways to bypass the handset's built-in security to install third-party applications. [corrected]
TUAW reports that a hacker by the name of 'planetbeing' supplied the photo which appears to show an updated and jailbroken iPod touch. The blog promises further details as the alleged jailbreak method is debugged and made safer for use by the masses.
Hackers have managed to jailbreak each iPhone and iPod touch software version since the devices hit store shelves, with the last known and confirmed jailbreak gaining filesystem access by exploiting a security flaw related to TIFF image files.

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With a little patience you can have a properly coded app AND keep your warranty and not violate your EULA.
But alas I guess there are some out there who have the money to waste in order to run a NES emulator.
Warranty>NES Emulator IMO