The previous version just doesn’t work on Jailbroken iPod touch 1.12.
Today a new version of Cutomize is released and I have it running smoothly. See? I used it to customize my Dock to have 5 apps. You can have up to 9 icons (yes, they overlap), or none at all. This and other customizations for iPod touch, including re-ordering icons, are now possible in this excellent app.
Go bling it. Installer-> Utilities: Customize
Checklist:
It’s normal for Customize to seemingly hang and then break out and return to the Springboard the first time you launch it. Just re-launch it a second time, and wait patiently (about 30 seconds). It will eventually loads and runs. Customize will load swiftly from the third launch onwards.