WiFi on 2nd generation iPod Touch times out

The WiFi for my 2nd generation iPod Touch is connected, but the internet is either excruciatingly slow, or times out every time I try to use it. I have a full signal and I've tried resetting the network settings as well as the iPod setting, but neither has made a difference. How do I fix this without spending money?

I took it into the Apple store and was told it could be a hardware problem, and (of course) I'm out of warranty, so tough cookies. How does something like this happen? I haven't dropped it or spilled anything on it. All I've done is listen to music, download apps, play games and surf the internet -- why am I told "tough luck," because it decided to stop working after two years of gentle usage? Ugh. Hope this serves as a warning to others: Apple products are not really worth the pricetag if they give out after 2 years, so be weary.

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