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Now i'm asking, is it possible to jailbreak my iPod and install a warez copy? I know it'l void some of my Apple support, but i can restore my original settings if i want.
You're asking for two different things here.
Jailbreak: This unlocks the iPod's harddrive so that you can install third party applications on it. I have a jailbroken iPod, and it's fantastic. Yes, it does void the warrantly. As far as I know, the highest jailbroken firmware at the time of my post is 1.1.4 (which is what I'm currently running on my iPod). You'll need to look on other forums to find out how to do this (there are many online)
Warez copy: You're looking for the 2.0 firmware without paying, and this isn't supported on this forum.