Itouch connect to wifi issue

I get all of the bars to get my home wifi, it just doesn't want to connect. I have entered the password and all of the info, it just wont get the internet!

Now. I've had my iTouch for a while now. I bought mine right about the time the new ones came out. I really love it, it's my baby and I take it with me everywhere. My wifi has been sort of choppy as of late, but within reason. Last night, I pplugged it in like usual, on my wall charger, and went to sleep. This morning, i woke up, went to school, and it wasn't finding the school's wifi. I assumed it was the schools issue, because our server is an Xbox, and a toaster crudely taped together. However, I returned home today, to find out that... My iPod will not connect to my wifi. at first it couldn't find any, and then I did a restore, with the restore button on my iTunes, and now it finds the wifi, but I cant do anything with it. Please help. I need to IM people to be happy.

connect