iPod touch 3rd Gen 32GB constantly dropping wi-fi connection

I'm wondering if there is a bug in the iPhone OS 3.x or if my iPod touch 3rd generation 32GB is at fault. I have rather frequent connection drops from my wifi even though my wifi router is within one to two human body lengths (i.e., 12ft) away and my laptops which also connect by wifi never drop connections. My router is a Time Capsule. At my other home, my iPod touch also experiences frequent wifi drops and the router there is an Apple Airport (UFO model).