You need firmware 1.1.3 or 1.1.4
Doesn't need to be jailbroken.
In Safari when you're on a site to bookmark, press + Button to bring up the Bookmark menu. Choose the "Add to Home Screen" option. That launches a screen that shows the icon to be used and an edit box allowing you to change the text of the bookmark. Change the text if desired and press "Add". Voila!
The ability to save bookmarks (aka WebClips) to the Home Screen was a new feature in firmware 1.1.3 (i.e. the one they want you to pay $20 for if you bought a Touch before mid-January).
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64 GB iPad 2 WiFi, Apple TV 2, 32 GB iPhone 4
Early 2011 MacBook Pro 13" (dual boot with Windows 7), Early 2009 Mac Mini
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