Finally got around to installing the 3.1.2 firmware on my iPod.
Everything else is downhill from there. Open up PwnageTool, pick your model, find your firmware and that's about it (unless you want to change boot logo, etc.)
Then restore your iPod with the new [custom] firmware with iTunes. In iTunes, go to your iPod on the left hand side, hold shift and press restore. Find your firmware and that's it.
For those running Windows, you can always jailbreak using redsn0w. I'd say it was well worth the upgrade, there's huge improvements. Landscape mail, able to search your iPod, Bluetooth and numerous other things. When your iPod is playing music, it'll show the album art at the lockscreen. I also noticed it displayed the lyrics for the particular song I was listening to while in the music app.
I'm glad I built that Hackintosh when I did, or else I'd be using redsn0w to jailbreak. Friday it is, nocturnal night it is.