iOS 4.0.2 has just been released, fixing the vulnerability in iOS that allowed the installation of malicious code.
Apple Support:
FreeType: A stack buffer overflow exists in FreeType’s handling of CFF opcodes. Viewing a PDF document with maliciously crafted embedded fonts may allow arbitrary code execution. This issue is addressed through improved bounds checking.
IOSurface: An integer overflow exists in the handling of IOSurface properties, which may allow malicious code running as the user to gain system privileges. This issue is addressed through improved bounds checking.
Download Links
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iPod Touch – 2nd gen
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iPod Touch – 3rd gen