I will select a Wifi network. It will turn blue and a check will appear. It there will be no bars in the status bar. If I try to go on the internet it will not work. I've found if I select the network, then turn wifi off and then back on, I will be able to connect just fine. I've always had this problem with my 2nd gen Touch. I only get it when I connect to an open network (no password). Anyone else? Hopefully this will be fixed in 2.2.