yes...that is correct.
for a 1.1.1 that is all i did to jailbreak mine.
then use installer app to add sources and apps....
good luck...i know it's a few days old post but hope you either read it or were successful before now.
If you look in the iPod Touch Hacks section, you will find a stickied thread that will take you through the process of Jailbreaking your iPod Touch System. You can also click the link in my signature to get there.