The only thing that you will do is just reboot your ipod, because redsn0w will not modify the system files. It crashes on "Updating ramdisk" and that's before it installs cydia or anything like that. It will NOT work. Wait for pois0n, that's the jailbreak for all iDevices with 3.1 or 3.1.1 on them. Including 3G iPod touch. So stop with "3.1 jailbroken-3.0 IPSW" it will just not work. You're just wasting your time.

Yeah, that's really annoying!
Just wait for iPhone Dev Team or Chronic Dev release ...

It worked for ppl.

It worked for ppl.

Post a video of your jailbroken iPod Touch running 3.1.1 then. I dare you.

I tried this method and got stuck at the 'Downloading Jailbreak Data...' screen. After about 10 minutes the iPod rebooted unjailbroken, just like it's happened for most people. Stop wasting people's time!

Of course it wasn't gonna work
It's common sense.

Okay, epic fail.

EDIT**

Take a look @ this.
I hate to link to QuickPwn, but...
http://www.quickpwn.com/2009/09/jailbreak-iphone-3-1.html