Woot! My jailbreak palaver has ended! After searching trough countless forums I managed to find a way to get the iPod out of recovery mode after the 1.1.2 jailbreak.

It's all rather simple, annoyingly and thankfully at the same time, all that was required is to follow the standard jailbreak procedure and when it enter recovery mode after the 1.1.2 jailbreak, quit iTunes if open and then run iNdependence for about 30 seconds, slide to unlock and it will reboot a few time but carry on unlocking and you will eventually have a 1.1.2 jailbroken iPod.

Sorry for the OTT use of exclamation marks (for me at least) but it's good to be back on 1.1.2, I'm gunna wait until after the SDK til I even think about 1.1.3 again.

Here's the updated guide.