IPod Touch 3rd Gen 32GB Constantly Freezing

I've had my 32gb 3rd Gen ipod touch since Nov 2009 and for about five months now it's constantly freezing up.
It's random when it does it and will freeze up regardless of software updates or resets.
I'm running 4.3.5 and have wiped it clean numerous times using itunes but it still does it.
We have an iphone and ipod classic and have never had a problem with either of those.
Can anyone assist?
I was thinking of taking back to apple via a store but other than charge the repair cost of £110.00 I've seen on the apple UK website what else could they do?
Many thanks,
Will

That what I fear, but as it started just out of the twelve month warranty and has become steadily worse until it's been practically unusable for the last three months it leaves a very bitter taste.
Only because I'm used to doing it I'm resetting back to factory settings as I type.
Thanks for your input.

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