Totally 100% possible!
Did it on the weekend myself, using a VNC remote desktop app
Not sure if you can do it without an un-jailbroken iPod, but you can certainly do it with a jailbroken one...
You need:
iPod - Veency (from Cydia)
Android - PocketCloud (Free version - I tried heaps, and this was the best for a number of reasons)
You need to ensure port 5900 (TCP/UDP) is open on your router, so the two will communicate. Set up a static IP address on the iPod at very least (this will ensure it connects easily every time). I'd also set on up on your Android too, simply because you might have a crap router like I do, which causes problems otherwise.
Set the two up, and you're off!
You might notice that you can sometimes connect to the iPod, but you'll only have a black screen - this is because the iPod screen is off, and/or locked - simply tap and hold on your Android, which will act the same as pressing the home button on the iPod.
Note for swiping, you need to touch, hold, then swipe - otherwise you just end up panning the iPod screen on your Android.
Enjoy!