Grayed-out "no wifi" problem for Ipod. Cost/solutions for out-of-warranty?

I have a much loved, out of warranty 3rd gen Ipod and have encountered the mysterious grayed out "no wifi" problem. I have tired every fix with no luck. I'm off to plead my case at the apple store tomorrow. My wifi was working perfectly until I did a restore from back-up. Anyone have any success? What solutions were offered for out-of warranty ipods at what cost? Someone on the forum said their out of warranty ipod was replaced but I find that hard to believe...thoughts? New fixes?