WiFi on 2G Ipod Touch is very weak

I had the OLD Ipod Touch (32Gb) and sold it to buy the new 2G Ipod Touch.
So far so good. Got speakers now and I'm happy.
But before (with the OLD Touch) I was able to connect to my home wireless network from anywhere in the house.
Now with the NEW 2G Touch, I have to be in the same room in order to get a signal. Even in the same room... If I'm not too close, the signal will be lost.
I then Upgraded my router to a Wireless N and put a Range Expander (to be sure I have a strong signal) and even my neighbor will get the signal from his laptop and enjoy a nice internet session, but yet, My new 2G Ipod Touch finds no WiFi.
Is the new update causing the problem?
I know the new update messed up the audiobook button and people are waiting for a new update, but could it be that the WiFi antenna is affected as well?
Help Please!

Not sure if this is the right place for this, but here goes:
I really like my 2g but I noticed the same thing: The wifi detection is very poor, even when I know there are access points nearby and all other devices (not just laptops, but other handhelds etc) have no trouble detecting them. I can see some of the networks in WiFinder if the antenna happens to be on but it apparently turns itself off when it can't find any networks.
I asked a buddy about it and he said he never noticed any problem, but he has a 1g touch. I borrowed his and took a picture with my phone of the two devices side-by-side: http://www.facebook.com/photo.php?pid=1170172&l=32825&id=508280781. The 1g is on the left, as you can see it detected a lot more networks and had no trouble connecting to the desired network. The 2g is on the right and it sees no networks at all. Occasionally one will pop up in its list with 1 dot for a few seconds.
What I want to know really is really just "Is this a design defect w/ the iPod Touch 2g (and if so is apple going to fix it w/ a software update or recall them or something)?".
If it's not a design defect and mine is just a bum unit then I will get mine swapped out for a new one at the apple store, but it they're all like this then that is a waste of my time and effort. Clearly there is a difference, as the picture shows (and it is completely obvious anyway if you have experienced it).

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WiFi on 2G Ipod Touch is very weak

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