Ive heard of only 2 ways, one of them is DemoGod that's for mac, and another one is Windows but requires jailbroken. I don't want to JailBreak my iTouch.

Is there a way to get my iTouch screen to be displayed on my Windows PC, so I can record my iTouch Screen, easier then using a docked camcorder.

There is an app like this in the works, but Apple has not yet approved it for release. If you watch the Apple Keynote speeches, you'll see that it is possible, but doing so requires access to a part of the API which is not yet available to developers. Doing this with a Jail Broken iPhone is the only way at this time.