IPod Touch 2G - WiFi barely works after upgrading to OS 4

After upgrading the firmware on my iPod Touch 2G to iOS 4, I immediately lost all connectivity to WiFi. I have tried just about everything; resetting/restoring everything on the iPod, cycling the router, etc. None of this works. If I stand within a few feet of the router, I receive a weak signal.
I believe the problem lies within inconsistencies of hardware used in the iPod Touch 2G and iOS 4 being designed for slightly newer/updated hardware. This creates an incompatibility.
Any thoughts on how I can get my device functioning properly with WiFi. I'm just at a loss now.

My 2G touch with iOS 4.2.1 continues to operate perfectly on WiFi. The problem could be your router not quite being up to snuff for newer WiFi protocols but I won't rule out a touch problem either. What to do?
1. Reboot the router (unplug the A/C power for a few seconds)
2. Reset the touch network settings - tap Settings > General > Reset > Reset Network Settings
3. Log onto your network as if it were a new network - tap Setting > WiFi > Other and re-enter everything.
Those three steps should clear things up. However, if you still have problems, write back and give us more details about your network - router, encryption used, etc.

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