Apple has just released iTunes 8 and the iTouch and iPhone firmware 2.1!
You will need to download iTunes 8 in order to get the new firmware. And unfortunately it looks as though iTunes 8 has blocked the Pwnge tool. However the iphone-dev team knows about this and will have a patch
http://blog.iphone-dev.org/post/49689803/countermeasures
Enjoy!