Does Cydia slow down my iPod touch?

Cydia's not working on 8GB iPod Touch 2G with iOS 4.2.1, jailbroken with Greenpois0n?

I have just jailbroken my iPod Touch 2G with iOS 4.2.1 on Greenpois0n RC6, and installed Cydia from Loader. But halfway through the installation, it stopped the installing process and showed a popup that said 'You have low disk space. Please delete some photos and videos.' So I went to my photos, and deleted some un-funny and boring photos that I don't need, didn't delete any videos (I have none) and didn't delete any apps (have 2) So next I went to iTunes, plugged my iPod in, and it said I have higher than 5GB of disk space. Next, I go to my home screen, and there's the Cydia app. So I press it and... comes up, doesn't load and goes back to my home screen, sharp. What happened? Loader won't let me reinstall Cydia, and I redid the jailbreak, but did the same thing. I'm super sure that I used the right software, and that I used the Windows version, and I downloaded the jailbreaker on Windows. Please no horrible answers. I'm sick of them.
Answer:

8GB iPod..,.

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