Itouch greyed out Wifi

Can anyone help? I am having problems with my itouch & wifi connection. It's greyed out on my itouch. I have reset the itouch itself, reset/restored the factory settings via Itunes. Nothing! It just remains greyed out. My other wifi gadgets are working are all OK. It's been like this for a couple of weeks and it's driving me crazy as I use ical for my appointments and it's not pushing them to the itouch.
Has anyone worked out the problem is? It's software 2.2. If anyone can help it would be much appreciated.

Have you tried to turn it on in Settings -> WiFi. Tap the gray OFF to get a blue ON.
If you have the manual: http://manuals.info.apple.com/enUS/iPod_touch_2.2_UserGuide.pdf see pages 90-91.
WiFi troubleshooting tips are here: http://support.apple.com/kb/TS1398
and here: http://support.apple.com/kb/TS1559

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    Tony,
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