Let me say Olethros, youre definitely on top of your game. Good moderator if I've ever seen one.
I tried installing those other versions of openSSL/SSH etc, to no avail, Wifi is still grey...
The only thing that makes me think its not a hardware problem is it worked fine until my iPod got stolen and the kid updated it to 4.2.1 and its been greyed ever since (longer story how I got the thing back)...
Any chance you can point me to a thread on here or give me some info on how I might downgrade my firmware and give that a try
I'm presently trying to downgrade to 3.1.3 and keep getting this error "This device isn't eligible for the requested build." I've tried changing my host file to the cydia IPs and that isn't woring either. I'll keep looking but does anyone know a way around this?
If you truly have a 2nd generation iPod touch, then you shouldn't be getting this problem. These don't use SHSH on iOS 3.x
Try downgrading iTunes to for example version 9.1.1