Ipod Touch 3rd Gen Freezes, is really slow.

I just bought a new 32GB iPod touch 3rd gen yesterday, and it keeps freezing up. When it loads the "Slide to unlock" screen, the text doesn't "light up" and when I slide the slider over, it doesn't move. after about 20 seconds it then proceeds to the home screen and is frozed there for another 10 seconds. Then it responds normally and lets me use it temporarily. after X amount of time, (1 min - 5 mins) it freezes up when I try to enter text, and does not display the text i'm typing for about 20 -40 seconds and seems completely unresponsive. then after that 20-40 seconds it enters all the text that i typed, or if i pressed the home button during that time it will show the home screen. Any ideas on the problem? I plan on exchanging it today.
I have tried hard resets and 2 factory restores on 2 separate machines with no difference in preformance
Message was edited by: Michael Ipod Touch Owner

Yes I have the exact same problem bought mine in December the 32GB version. I brought to a authorised repair centre but they could find nothing wrong with it. I am back to square one with a dud ipod - lots of reports on here of similiar problems...

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