So i figured i would try this. My ipod touch was a pwned, on firmware 1.1.4 with the works. probably about 50 or so apps on it. What i did was placed the 2.0 firmware (yes 5A347) into Library/iTunes/iPod Software Updates. Then i plugged in my ipod and opened iTunes. I clicked update and it told me that 2.0 was available. So i went through the regular updating process. However i got nervous in the beggining because it began to force itself into restore mode, and as you know i had custom logos and stuff so it flashed those then went to a white screen for a second then went to the 2.0 apple boot logo, which if you dont already know looks much different than the regular one, its smaller... The process of updating took probably around 15 to 20 min. BTW dont flame me and say "we already knew this" or "its been done before" i just wanted to tell you guys that its possible to update from a pwned 1.1.4 to a working 2.0 without entering DFU mode or anything like that.