I'm sorry, but I don't have updated information on this. I use the Kindle for PC files and remove DRM with the Calibre plugin tools. I don't know how to remove DRM from files that were originally downloaded for the Touch. If there's some reason you can't download and install Kindle for PC and use those files instead, you'll need to check over at Apprentice Alf's blog and see if someone there can help. I believe there is a standalone tool, but I haven't used it and wouldn't know how to advise.
Re: Remove DRM using Calibre for ebook originally downloaded on my Kindle Touch