I just recently jail broke my itouch and I’m not sure how to get free stuff. Did I do the right thing? Is jail breaking and hacking the same thing?

Can anyone tell me what’s the difference between the 1st generation and the 2nd generation iTouch besides one is older than the other?

I am going to buy an itouch next month but im only 16 and dont want to spend all my money at once. The older itouch is cheaper, but if I was going to wait to get the newer one I want to know what makes it so much better?