I think I have figured out the issue. Please give this a try and let everyone know if it works or not. This is not necessarily a fix, but a workaround that DOES NOT include restoring, resetting, disabling wifi, push, etc, or using airplane mode. I have troubleshooted my iPod touch (2G) and my wife's (3G) which have been having the battery drain issue. The Apple Store's solution was to swap out my wife's iPod touch with a "new" (probably just a refurb) one. But we had the same problems and we DID NOT restore from backup but set it up as a new iPod touch. So, what I think the issue is, is that after the update to the new iOS4 (and all variants including 4.1), there is a firmware issue that the iPod touches do not work well with WPA2 encrypted wireless networks and results in massive battery drains. I disabled my WPA2 encryption and switched to WPA and so far, our batteries are working just fine. PLEASE TRY THIS AND REPORT BACK so we can know what the problem is and for Apple to get off their lazy butts and fix this problem with 4.2.