i have figured out how to get the iphone apps and squiggle icon move for a 1.1.3 jailbroken ipod touch. These are the steps.
1) Im assuming you have a jailbroken ipod touch, so download BSD Subsystem and then OpenSSH.
2) Login to your ipod with Winscp or the mac one with your ip address as host name, root as username, and alpine as password.
3) Go into /System/Library/CoreServices/Springboard.app and rename N45AP.plist to some like N45AP.old.
4) Then change M68AP.plist into N45AP.plist and reboot iPod Touch.
I hope you like it!

I am currently trying to get it so just $20 ipod apps show up.
NOTE: This will give you Phone, SMS apps.