[Wayland]

I have a first generation ipod touch that has started running slow. I am using system 3.1.2. Before updating to this system, backing up to itunes was much faster. Also switching between panels and working with apps was faster. The new Airsharing appears to be a little buggy and may be causing problems.

I might upgrade system software this weekend. Anyone have any other advice?

[Silent]

I have an advice. Invest in another more up to date iDevice. Maybe an iPod Touch 3G or iPod Touch 4G. It is more suitable to sustain newer updates.
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The iPod Touch First Generation is not so good in terms of unlocking potential on later updates. Which basically means you are very limited to the newer updates due to iPod Touch's First Gen out-dated specs(so to speak).
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So all I can advise you to do is get a later model. Hope this helped.

Silent