Well, first you need to diagnose if it’s a problem with your wireless router or your iPod Touch. Take your iPod to a different place with a Wi-Fi connection and see if you can connect there. If you can’t, then the problem lies with your iPod touch. Do a factory reset and see what happens. However, I have a feeling there may be something wrong with your router. Did you try not only resetting the router but resetting the cable modem as well? Sometimes, calling the your ISP and having them send a signal to your cable modem can solve the trick as well. The problem that you describe, however, sounds like what happens with my laptop when it’s just on the fringe on my Wireless network. Be sure that you’re using your iPod Touch with good Wi-Fi reception, or either install wireless extenders or move your router to a better location.