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I m using my iPod 2G 32 Gb since one year and recently it had a upgrade to its operating system. Now it has an iOS 4 which worked fine initially but when i tried to use the Wifi on my iPod then i came to know that there is something wrong with my iPod. Actually i am not able to switch my Wifi ON since my iPod has been upgraded to this new operating system.
If you use a home's Wi-Fi router, drag to complete one of these proposals the corresponding user manual or consult the documentation. Check the website of the manufacturer, that it is firmware or software updates for your Wi-Fi router. Check the option to encrypt the wireless network to your Wi-Fi router: If you use WEP encryption and multiple WEP keys on your Wi-Fi router then configure it as a trial so that only a WEP key in the key index 1 is used. Instead, use WPA or WPA2. The encryption protocols, WPA and WPA2 are pledged as security system. Wireless network of new and more efficient than the old WEP protocol. Temporarily disable the encryption and secure wireless network to a Wi-Fi router to rule out problems with the encryption. Put your Wi-Fi router back tentatively (or turn it off briefly and back on).
If your Internet service provider also offers cable and telephone service over this line, contact your provider before taking this step to avoid the interruption of services. Disable the 40 MHz option in the 2.4 GHz settings on your Wi-Fi router. Mac computer, iPhone and iPod touch do not support this mode. Turning off could solve an error problems. 802.11b / g Wi-Fi networks are supported by all iPhone and iPod touch models. The iPhone 4 also supports 802.11n Wi-Fi networks (only 2.4 GHz).
WLAN problems seems to be causing due to router settings which you have to tweak a bit after installing an iOS 4. I suggest you to turn off the router N and then check that are you able to use Wifi from your iPod or not. I was having the same issue on my iPod which I solved in the same way which I am talking about. So this changes are necessary after having an iOS 4 on your Apple Device.
It might happen that you would be carrying your iPod on the weak signal strength area due to which your iPod is not getting proper strength of wireless network and hence you are not able to use the Wifi on your iPod. I suggest you to keep on checking about the same issue for some more time as it might not be in the same way when you move to some other area.