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Basically, it's still in great condition, and is a 32gb ipod. Everything works, except that the wifi is grayed out and doesn't work, at all, ever. Is there any way to fix this? I read somewhere that it was because it has iOS 5 on it, which doesn't like 2nd gen ipods. Would anyone know if this is possible to fix in any way, such as downgrading the OS or an even newer update?

ALSO: How hard is it to replace the volume buttons? Mine don't work 100% of the time, particularly the up one

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I'm curious how you got iOS 5 on it without a hack. My understanding was that it doesn't install on 2nd gen - at least it didn't on my 2g. All the best on the hardware. Unless, you really know what you're doing there, I'd avoid hardware fixes. –  bassplayer7 Mar 17 '12 at 3:29

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This is relatively common for that generation (and 3rd generation). Typically, when the Wi-Fi goes out, the bluetooth will as well since they're on the same chip. Is that grayed out as well? If not, it can still be the Wi-Fi chip.

There's not really an easy fix for it. It's definitely going to be a swap out, especially with your volume button issue. You can take your iPod to the Apple Store and they'll give you a quote on a replacement. It'll probably be around $99.

Something else you could try is restoring your iPod Touch in iTunes. Make sure you set it up as a new device.

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