anthony, here is my answer from a question very similar to yuors "here is what Apple suggest. try this first "Resolution
If you encounter this issue, try the following steps and attempt to enable Wi-Fi or Bluetooth after each one.
Verify that Airplane Mode is turned off.
Update your iOS device to the latest version of iOS.
Reset Network Settings. To do this, tap Settings > General > Reset > Reset Network Settings
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Restore your iOS device in iTunes." [http://support.apple.com/kb/ts1559|from here]. If that does not work, you may have to disassemble your iPod and take a look at "The wifi assembly is at the top right corner of the device, right behind the black shield that is visible on the backside of the outer stainless shell. If you remove the three screws that holds the entire top pcb assembly in place, and gently lift the ribbon wire that connects the top and bottom half, on the backside of the top PCB assemble, you will see a small rectangle metal cover. This covers the broadcom chipset for the wireless." thanks to microdynamics [http://www.ifixit.com/Answers/View/25112/NO+WIFI+greyed+out.|on here.] There is more about that [guide|586|on here.|page=2] Of course you also should make sure that you are in a WiFi area....Hope this helps to get you connected. good Luck.
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Restore your iOS device in iTunes." [http://support.apple.com/kb/ts1559|from here]. If that does not work, you may have to disassemble your iPod and take a look at "The wifi assembly is at the top right corner of the device, right behind the black shield that is visible on the backside of the outer stainless shell. If you remove the three screws that holds the entire top pcb assembly in place, and gently lift the ribbon wire that connects the top and bottom half, on the backside of the top PCB assemble, you will see a small rectangle metal cover. This covers the broadcom chipset for the wireless." thanks to microdynamics [http://www.ifixit.com/Answers/View/25112/NO+WIFI+greyed+out.|on here.] There is more about that [guide|586|on here.|page=2] Of course you also should make sure that you are in a WiFi area....It is also possible that your WiFi flex cable is in need of replacement. I would get me [http://www.everbuying.com/product42713.html|one of these ] and replace it. Check on this guide http://www.ifixit.com/Guide/Installing-iPod-Touch-2nd-Generation-Logic-Board/1127/9 and starting at step 25 it shows your the WiFi flex. Hope this helps to get you connected. good Luck.
anthony, here is my answer from a question very similar to yuors "here is what Apple suggest. try this first "Resolution
If you encounter this issue, try the following steps and attempt to enable Wi-Fi or Bluetooth after each one.
Verify that Airplane Mode is turned off.
Update your iOS device to the latest version of iOS.
Reset Network Settings. To do this, tap Settings > General > Reset > Reset Network Settings
Restore your iOS device in iTunes." [http://support.apple.com/kb/ts1559|from here]. If that does not work, you may have to disassemble your iPod and take a look at "The wifi assembly is at the top right corner of the device, right behind the black shield that is visible on the backside of the outer stainless shell. If you remove the three screws that holds the entire top pcb assembly in place, and gently lift the ribbon wire that connects the top and bottom half, on the backside of the top PCB assemble, you will see a small rectangle metal cover. This covers the broadcom chipset for the wireless." thanks to microdynamics [http://www.ifixit.com/Answers/View/25112/NO+WIFI+greyed+out.|on here.] There is more about that [guide|586|on here.|page=2] Of course you also should make sure that you are in a WiFi area....Hope this helps to get you connected. good Luck.