Did you just update to BUGGY OS 4.x???
All the updates starting with OS 4.x have completely screwed up most iPod Touch', especially older models like Gen 2 and 3.
Inability to connect to any WiFi.
Fluctuating WiFi signal no matter how close you are to the AP.
Drastically shortened battery life, even when in sleep mode.
And Apple hasn't done a **** thing since irritated owners have complained about it since the middle of 2011!!
(I am one of many thousands affected!) Look at older threads by searches of "Fluctuating WiFi", Terrible Battery Life, for the Touch and iPhone.
This is why I bought an Android tablet instead of an iFad this Xmas. Non-existant Apple support!
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iPod Touch Gen 2.
MSi Core2Duo 16" Notebook
HP 15.4" i7 Media Center Notebook
ASUS 10.1" Transformer Android Tablet.