IPod Touch 2G w/OS3.0: WiFi + BT observations and issues

Question

I have an iPod Touch 2G with OS3.0. I have had the Touch for about 5 months and had a great experience using OS2.x. I upgraded to 0S3.0 the day it was released and have recently begun experimenting with Bluetooth connectivity. I've noticed a general overall slow-down in OS responsivness after installing OS3.0, but some of that has been reduced by freeing memory occasionally using iStat. Still, I often get brief (0.1s to 10s) but annoying periods of seeming lock-up with no touch-screen response when browsing play lists, surfing the internet etc. I should mention that I have about half (8G of 16G) of my storage (NAND) memory used. DRAM usage is more or less out of my control and often runs between 2M and 21M free depending on how recently I have "freed memory" using iStat.
When using BT with WiFi disabled I get predicable reasonable performance. No pauses or gaps in audio playback. Good sound quality. Great range for BT.
When using WiFi with BT disabled I also get reasonable performance. I get up/download speeds limited only by internet connection bandwidth which is 5-7 Mbps download and about 500-700 kbps upload at my home on my cable modem connection as recorded by Ookla Speed Test. I get 1.4Mbps both directions at work where we have a T1 connection to the Internet. My home download numbers decrease slightly (500 kbps)if I play a song (thru built-in speaker or ear buds) during the test. I attribute this to CPU utilization, but I can't be sure without more testing.
When I have BT and WiFi enabled at the same time, I begin to experience some problems....
1 - If there are no BT devices in range (BT is on, but not connected to anything) I don't notice any issues. However, if I stream audio to a BT device, I see a noticable slow-down in WiFi performance. I see home WiFi downlowad speeds drop to 500kbps (a 10x reduction) and upload speeds decrease to 300kbps (2x reduction). I have not tested this at work yet, but plan to do so. I'm not totally sure that this is a "problem" exactly as it could simply be BT and WiFi packets colliding with one another and / or sharing bandwidth on the wired interface between the radio IC and the CPU and / or a CPU bandwidth limitation.
2 - If I steam audio to a BT device while outside WiFi coverage (or between coverage zones) the audio will often times pause for anywhere from 0.1 to 1.0 second at a rate of about one pause per minute or more often. As soon as I connection to a WiFi network, the pauses go away. This is definitely a problem. It is very reproducable and one that I hope Apple will investigate and correct in a future OS revision.
For now I try to keep my BT and WiFi use mutually exclusive where possible. If I do use them at the same time, I make sure that I'm in a good WiFi coverage zone with reasonable internet connection.
If anyone else has experiece with WiF + BT useage on a 2G Touch with OS3.0, please report it so that (hopefully) Apple will have data to use for fixes in upcoming OS updates.
Doug

Answer 1

I just recently updated my iPod Touch 2G with OS3.0 and I also notice that the speed of my internet got slow when I use my iPod. I haven't tried the BT yet. Everytime I use my iPod using internet, mails or video streaming, I always test my internet speed using the speedtest app by Ookla when it was still at its 2.X firmware. Its the same speed as I check using my computer. Internet speed is 1Gbps.
But now, after upgrading it to OS3.0, the internet connection is slow. Download speed now is at its half. Upload speed is the same I think. I tried checking my devices such as the modem cabels and the WiFi config and the settings are still the same. I even tried to play with my WiFi setting and set it to Wireless G mode only, but the output is still the same.
I've check also the forums that's posted at the intenet and it says there that you could try these steps:
1. Try to power cycle the iPod - Same result. WiFi connection speed still the same.
2. Check if the WiFi has a WiFi address - Checked that under settings>general>about. It does have a WiFi Address and also the BT.
3. Try Reset Network Setting - I also tried that but nothing's change. Same speed as before.
I even tried to download another speed test app. But still the output is the same. I don't know what is causing the issue of the new firmware but the I the new features it. Hopefully there is someone there from Apple that could take a look at this.
As for now, I'll stick with the previous firmware.
Rey