Illaass - thank you, very much, for your prompt reply.
My router is using WPA/WPA2 security
I was unclear in my first post: the problem I have with the iPod and Windows is that Windows doesn't recognize the iPod when it is attached via the supplied USB cable. Therefore, I cannot download anything to the device from any source.
As for the WiFi Issue: Prior to posting my issue, I did a search through the site and found the article you reference. After following the outlined steps, the problem remains. I even disabled security and tried to connect, but it still flashes the "cannot connect, invalid password" alert. Another issue has just cropped up: the iPod keeps turning itself off - not sleep mode or darkened screen mode - completely off and must be restarted using the on/off switch. Very odd. Is it possible that there is something wrong with my iPod?