To both of you with WiFi problems:
Several things that you will want to try:
1. Power cycle your router - ie. unplug the power feed
2. Reset the network settings on your touch - tap Settings > General > Reset > Reset Network Settings
3. Use the following steps to log onto your network - tap Settings > WiFi > Other and type in your network name (aka SSID and it is case sensitive), your security type, and your network password.
If you think you are connected, tap Settings > WiFi > and then tap the little blue > next to your network name. You should have the following fields filled in - Your IP address, your subnet mask, your router's IP address, and the DNS IP addresses. If you are missing anything, write back.
The other two tips are: make sure your router is not broadcasting in N mode only as your touch is b/g modes only. And if you are using WEP, consider changing to WPA-psk or WPA2-psk. If you do stick with WEP, use the hex key listed in the Key1 field as your password.