New iPod Touch internet slow/not working

I've recently had my iPod Touch second generation replaced by a refurbished second generation iPod at an Apple Store.
my old one used to connect to the internet fine and have decent speed. The new one will connect to the wifi and barely load a page or not connect at all. Usually says the network connection was lost. Even when I'm next to the router.
There have been no changes to my wifi since replacement.
I've tried resetting the iPod and that doesn't help. Are there any settings I can check? I remember having no problems before. Any help is much appreciated thanks.

Take it back. It's most likely a refurbished unit with problems.
Basic troubleshooting steps  
17" 2.2GHz i7 Quad-Core MacBook Pro  8G RAM  750G HD + OCZ Vertex 3 SSD Boot HD 
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