Will not allow me to connect using an ipod touch.

I'm also using a WRT160n (v1) with WPA2. Problem wouldn't go away until I tried a solution I saw on Amazon.com related to the 160. Sounds strange, but it worked.
1. Disable security on the router.
2. Select network from Wifi list on Ipod (this connects the Ipod every time for me)
3. Enable security on the router.
4. Type in password on Ipod, it will force you to reconnect to network after it sees password on router is enabled. (I also used upper case letters this last time, which someone might want to check it's not as simple as Apple forgetting to filter hex characters to upper case....)
Voila, I am connected.
Hope this helps

I have new Linksys WRT160N and new Ipod Touch. Wouldn't at first connect but when I upgraded firrmware to router it fixed the problem. Using WPA2 and version 3 of hardware.

I believe the iPod touch communicates using Wireless G. The WRT160N can communicate with B, G and N devices. However, you may have to change your wireless settings on the WRT160N to allow wireless G devices. This will slow down the overall speed of your wireless network though. Another issue could be your wireless security. The iPod touch works with WEP and WPA but I am not sure if it works with WPA2 security. You may also check those settings. These two areas are normally the two problem areas if you are seeing the router that is..

My IPaq wireless has an icon that lets me log into other networks by just selecting them and putting in the password or no password if it's an open network.

I Googled the Ipod touch instructions and found a MAC blogger with the specific instructions here http://mac.blorge.com/2008/07/14/wi-fi-setup-how-do-i-access-the-internet-with-my-ipod-touch/

If you can't login because you don't see the router, try logging into the router from a computer connected to it and make sure the wireless is turned on and broadcasting an SSID. If you have a WEP password set, you will be able to read it under the Wireless Basic Wireless Settings tab. If you need specific help with the WRT, you may visit the Linksys site. Here's a link to connecting your wireless device to a Linksys product http://linksys.custhelp.com/cgi-bin/linksys.cfg/php/enduser/std_adp.php?p_faqid=20947

or, here's a manual where you can start at page 13 http://downloads.linksysbycisco.com/downloads/userguide/WRT160N_V10_UG_A-WEB,0.pdf

Carl