2g wifi dropping out

[Boca]

My young son uses my old 2g as an ipod. It's worked fine on wifi until today when he dropped it. No obvious physical damage but now it locks on to our home wifi...then drops off...then connects (endless cycle)

My macbook is on the wifi and works fine...same with a pc.

What could the drop have affected? If this isn't and issue any suggestions for getting him hooked up again much appreciated.

thanks all who reply.