IPod touch restore and data corruption

My iPod touch has a strange weird sync/restore.  My iPod touch started to act weird, apps started crashing, other issues started happening.
I restarted my iPod, several times.  It didn't fix the issue.
So I restored.  And that didn't work, it made the issue worse.  (I synced before I restored =D.)
Some of the apps came back on the iPod, without their app data.
Some apps came back, but crashed every-time I opened them.  Some apps didn't even come back!
Most of the issues were fixed.  My global settings didn't "come" back either.  Issues are coming back now, such as a delay when unlocking, a lit black screen when unlocking, apps hang, black squares appear where redraw regions are, pictures disappear sometimes.  Bookmarks appear most of the time.  Safari freezes almost all of the time.  Total lockup.
I'm wondering if this is a hardware issue, or a corrupted backup issue.  I have a second gen IPod touch running iOS 4.1 not jail broken.  I'd like to fix it, and if I get a new iPod touch I'd like to have all of the data on my old one if possible.  I'm using a Mac with lion installed to sync my iPod.  The issues started happening before I upgraded to lion.

I think the best thing you should do is send the broken iPod Touch back to the store and see what thety say. You can try to reinstall iTunes because sometimes those files may get corrupt,  try to put it into DFU Mode ( Read Here http://forum.pocketables.net/showthread.php?t=566) for how-to's. and Restore it again, basically with DFU mode it disables your iPod and you can only activate again by restoring it. Most of the time Jailbreaking is the cause of the issue but i see that you did not jailbreak your device. Sending it back is definitly the best choice because either they fix it, or give you a new one. Good Luck fixing it! Reply if you need any help or explanations.
=)

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