The information that accompanies this update is brief, indicating that the purpose of the update is to solve the problems detected, although some notable improvements are also found in this 157 MB download.
The first is that the updated iPod touch shows a battery icon next to the iPod entry in the iTunes Sources list. This icon shows the current battery charge of the iPod. (This feature is also present in the newly updated 1.1.2 software for the iPhone.)
Second, the iPod touch now supports entering and editing events directly on the iPod, just as it was also possible on the iPhone. It seems that Apple has reacted to the criticism launched by users of the device to what appeared to be the arbitrary removal of features that were available on the Apple phone and not on the iPod touch.
Finally, the update disables the TIFF exploit that allowed hackers to install third-party applications on iPod touch. However, in the Unofficial Apple Weblog Erica Sadun indicates that version 1.1.2 of the iPod touch software has already been hacked to allow the installation of applications developed by third parties.