What is up with my iPod wifi? My first gen never had a problem, bit since the day I got my 3rd gen, it keeps disconnecting from wifi. When I turn it on sleep mode, it disconnects so I have to go to settings, turn wifi off then on again, connect to network. Then after about 10 seconds it goes again. Repeating the las step, it works okay until I put it to sleep again! Ahh what's wrong?
Hm. Strange then. I guess maybe Apple left this feature as it saves battery. But, to be honest, I also own iPod touch and it doesn't disconnect with hot-spot after blocking or turning or sleep mode. Maybe it is up to Your Wi Fi provider, try to change something in hot-spot options.
You should take it to the apple store and get a new one if the problem persists. These devices are expensive and in my book I think people should utilize the warranty whenever it benefits them. I had wifi problems just like this with my old 3g iphone and they got worse and worse until one day I couldn't get on wifi at all. I restored it and still couldn't get on wifi. I took it to the apple store and they thought it was a hardware problem so they gave me a new phone.