I-Pod Touch, 3.0 Software, Various Issues

I have a second generation I-Pod Touch. Got my first 12-7-08 but the battery died so I used my warrenty to get a replacement. That worked out fine.
Couple of days ago I paid the $9.95 for the 3.0 Software. Its ok. I don't have any problems with it except it killed 1 of my apps which is currently working on a 3.0 compatible upgrate so thats no big deal.
I've noticed the weaker wifi signal. I read another post on here about setting your router to B and G. I set it to G only. That took care of it, however yes it still is a little slower then before. But not slow enough to keep it from functioning in the way I need it to. Anyways, whoever posted that info, thank you. That helped another problem.
My biggest issue is a grey (black when in the settings function line that suddenly appeared the other day on the bottom half of the screen. I don't know what caused this even though I have done a lot of internet research and other people have had these problems. I did leave it on all day docked with the screen on (would that cause the problem)
The line isn't that noticeable but the fact that its there irritates me.
I called Apple Support and they wanted me to send it in and pay $30 for shipping which is another irritating thing. They also recommended me to an Apple Store. I don't live near one. So now I'm waiting for another FED-EX box.
Is there anyway to get rid of these lines and does anybody know what the cause of it is? I want to avoid having to go thru this replacement process again. Its a pain and the Fed-Ex truck (which requires you to sign for everything) always arrives when I'm asleep.
Thanks

luvlabs wrote:
Instead of limping along, take some action to fix your iPod, please.
Obviously, before posting, I checked and applied all the resets and restores as descibed in Appendix A of the iPod touch user guide.
WiFi is still erratic and the bottom of the iPod (the battery?) is still going hot.
I'd greatly appreciate some positive ideas and help.
I'm waiting for OS 3.1 now.

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