I have to say that I'm really disappointed. I'm one of the "no wifi" victims too! I was so happy with the iPod Touch. This morning I watched a 30 minute video on the Touch, and when I went to check one of the movies star's information through Safari, it could not connect to server. I went to the settings to access the Wifi, and it was grayed out. I have restored my iPod at least 8 times now. Even went back to version 1.1.1 - nothing worked. I cannot access the internet at all with this iPod Touch. Looks like I'll be phoning Apple tomorrow morning about it. I spent the day trying to get it to work.
At least I see it's not just me - others are having the problem too. After playing the movie I noticed that the iPod was quite warm. The person who mentioned "heat" earlier may have hit the nail on the head. It could be heat that's causing the WiFi hardware to break down. I would not have thought that the heat the unit generates itself would cause it to break. It doesn't make sense.
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