roadrippersid Do u have SHSH Blobs ( Signature required for Restore ) for 5.1.1 saved? if Yes then Restore back ur iPod to 5.1.1 firmware and then use absinthe again it should work.....and if u not seeing cydia is because before jailbreaking u did a restore ( not firmware restore but DATA restore ).... Try setting up as New Device and do the process...it should work...pm me if u need help!! for more info see this
How to downgrade iOS 6 to iOS 5.1.1 on A4 devices
NOTE : Dont go to iOS 6 not jailbreakable!!
NOTE 2 : Even after ur Absinthe says that it is a Success for JB wait for ur iPod to boot up and come on the Main Locked Screen till then do not disconnect the phone and dont do other stuff...as cydia requires lots of time to install on the system!! wiat for the ipOd to boot after Jailbreak and come in the Activation/Lock Screen!