My ipod wont connect to wifi at my house but will at restaurants.

Power cycle your router.

To connect to the internet using wifi on the iPod touch, just follow the following steps:
Firstly, you should be in a wifi zone(an area where you can access wifi) or if you want to use it at your house with your residential internet connection, just get yourself a wifi router(shouldn’t cost more than $50-60) and configure it with your residential internet Once you are in a wifi zone, on your iPod touch, go to:
Settings > Wifi > Turn your wifi ON > Select a wifi network > Key in the WEP(only if asked for) > Connect
Once you’re done with this, you should get the IP settings and be able to surf the internet with no problem.
Note: At times when you’re too far away from the wireless router or a big thick brick wall is separating you and the wifi router, your iPod might show the network as available and you would also be able to connect to it, but surfing the internet using it would become a problem. If this happens to you, don’t worry, just move closer to the wifi router and it shouldn’t pose any other problems. Happy Surfing!
dont forget to rate me.....

quit being a cheap *** and get a new router

try updating the firmware to 2.2. if that does not work.
You may have to reset your Modem + Wifi Router

In my case, if I bring a new device home, my router won't allow it to connect because it is not recognize. Unplug both router and modem, plug them back ( router 1st ) and try again.

This issue never happens to me at home now but it still happens when I go out to bars or restaurant that offers wifi.... Turning off and on the wifi in your ipod touch a couple times usually fixes it.

Usually Coffee Shops, fast food restaurants or perhaps your neighbors leave their wireless point access for use, unless they will put a protected password then you cannot able to access them.
Essentially your IPOD Touch can easily identify automatically wireless network in your range (open or password protected).
Ask them that you wanna connect to the wireless network and maybe they will give access to you.
Hope this might help you a tip on how and why you want access on WiFi Spot Network.
Good luck!
Please rate us.
Thank you.

Downgrade the software or if possible reset the wifi at your house.

i had experienced that problem with my PSP at the same case,just set your internet connection again and delete all of you history,cache and some data in you iPOD.HOPE I HAD HELP

You must have your wireless profile's name and passkey.  Try resetting your router, then make sure you create a new profile for your desktop and take note of the details (ie name, WEP/WPA Key)  Should work just fine if you follow the steps.

Make sure your WiFi connection doesn't have a firewall blocking access to it and make sure security setting say you can share the connection .

Jailbreaking your iPhone to 2.2 is going to mess up your phone. I've got a jailbroken 2.2 iPod Touch and it's ok - a friend of mine also tried to jailbreak his iPhone to 2.2 and lost connections as well.

Downgrade back to 2.1 and you should be ok.