Brand new iPod touch won't do anything over WiFi

My iPod touch arrived in the mail this morning and since I charged it up it either a) browses extremely slow in Safari and then quits or b) continues to claim there is no network connection.
I currently have it downgraded to WEP and now nothing works, Mail, Safari, not even the Weather app will update. YouTube has never worked at all.
I'm on 2.1.1 software and have since discovered this forum is full of WiFi problems. Needless to say I am very dissatisfied with this and had I known the iPod touch is absolutely useless for WiFi I would've saved $100 and just got a nano instead.

Hi. I read through this thread and many others (seems many people have problems connecting iPod Touches to the internet) and have tried to connect my iPod touch. I have a Linksys WRT5G V8 router, a Zyxel -600 Series modem, a PC running windows xp, and a MacBook. My PC and Macbook run fine. My iPod touch does not.
I have updated the firmware. I have made a full bridge connection. I have restored my iPod. I have power cycled the modem and router.
If you will bear with me, I will now post what my setting are on my router with the hopes someone will be able to help me make a connection with my iPod. I should point out that like others, I am able to connect to the internet, but not download any pages or send/receive mail.
Here goes. On the Set up page:
PPPoE
my user name
password
connect on demand max idle time is blank
keep alive redial period 30 seconds is checked
Router name WRT54G
Host name - blank
Domain name blank
MTU - auto
Size 1392 is a grey box
On the wireless page:
Wireless Netword mode - mixed
wireless network name SSID - my name - not Linksys
wireless channel - 11-2462Ghz
Wireless SSID broadcast - enable is checked
Status: SES security parameters configured
On the wireless security page:
security mode: WPA personal
WPA algoithms - AES
WPA Shared Key - password I made up
Group Key renewal 3600 seconds
Wireless MAC filter:
Wireless MAC filter - disabled is checked
Advanced Wireless Settings
Authentification type - grey box with Auto
basic rate - default
transmission rate - auto
CTS protection mode - disable
Frame brust - disable
Beacon interval 50
DTM interval 1
Fragmentation threshold - 2200
RTS Treshold - 2200
AP Isolation - off
Secure Easy Set up - disable
On the Status Page:
Firmware version v8.005.build 002, Jan., 9, 2008
Current time - October
MAC address
Router name - WRT54G
host name - blank
domain name - blank
login type - PPPoe
Login status - connected
IP address - 70.251.162.47
subnet mask - 255.255.255.255
Default gateway - 70.253.175.254
dns 1 - blank
dns 2 - blank
dns 3 - blank
mtu 1492
On the DDNS page
DDNS service - disabled
Applications and Gaming
This page is all the same --
Application - blank
Start - 0
End 0
Protocol - both
ip address - 192.168.2 0 (no different numbers)
Enable - nothing checked
Port Triggering page
page is all the same - all zeros
DMZ page
disabled is checked
Qos page
disabled is checked - nothing else on page
Administration page:
assword -
reenter to confirm -
access server - http is checked
wireles access web - enable is checked
undefined - disabled is checked
management port - grey
use https - blank
On my iPod touch:
Wifi connected
IP Address
DHCP
IP address 192.168.2.102
subnet mask 255.255.255.0
router 192.158.2.1
DNS 192.168.2.1
Http proxy -- off
So....by looking at the above, can someone please tell me what to do to make the iPod touch connect to the internet and download pages?
I have spent hours upon hours and then more hours trying to make this thing work. I paid and additional fee to Linksys to have them troubleshoot the problem but the first guy i spoke with said I had to do the bridge connection so we hung up and when he called back, I was out and he never called back so I called Linksys. Despite the fact that I explained how I had spoken with an advanced tech, the man would not transfer me and insisted my problem was solved because my pc, laptop, and iPod did connect to the network -- never mind the fact that 1 of the three didn't work properly which was the sole purpose of my phone call to begin with.
I would really like to get the iPod going -- my daughter just bought her's and is anxiously looking forward to being able to use it.
In closing, I'm wondering if I should give up with this particular router and buy a new one...but which new one? The Apple tech recommended either an Airport Extreme or Airport Express -- has anyone had success connecting these to iPod Touches?????
Thanks!

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