Jailbreaking Your iDevice (firmware 3.1.2, 3.1.3, & 3.2)
Jailbreaking your iDevice, be it an iPhone, iPod touch, or iPad, will allow you to install applications and firmware hacks that were either not approved by apple on the iTunes store, or were released specifically for the jailbreak community. This techorial will teach you how to jailbreak any iDevice running firmware 3.1.2, 3.1.3, or 3.2.
For this techorial, we will be using the most recently released jailbreak. Spirit jailbreak makes jailbreaking your iDevice an easy, virtually instant process!
Step 1: Go to spiritjb.com/ and download the appropriate jailbreaker.
Step 2: Make sure that you are running any version of iTunes 9. If you are not, visit iTunes.com and update your iTunes version. To check your iTunes version, navigate to Help -> About iTunes within iTunes.
Step 3: I recommend backing up your iDevice with iTunes just in case any errors occur during the jailbreak. This will allow you to restore everything to exactly how it was before modification. To back up your iDevice, connect it to itunes and let it sync, or right click its icon within iTunes and select "Back Up".

Step 4: Once your iDevice is backed up with iTunes, it is time to start the jailbreak! Before continuing, you must ensure the following:
1. Your iDevice must be activated; meaning it is not stuck on the Connect to iTunes or Emergency Call screen.
2. Your iDevice must be running firmware 3.1.2, 3.1.3, or 3.2
3. You must be running itunes 9.
Step 5: With your iDevice plugged into iTunes, and sitting idle (not syncing). Launch the spirit jailbreak application.

Step 6: Spirit will recognize your iDevice. Press the Jailbreak button to start.

Step 7: The jailbreak only takes a couple of seconds to finish! Once it is done, close out of the spirit application.

Step 8: Your iDevice will now reboot while you view the spirit boot screen. Once it boots back up, you will have cydia installed on your now jailbroken iDevice!

Your iDevice is now jailbroken. If you experience any issues during jailbreak on windows vista, enable compatibility mode and try again.