Hi -- One of the major uses I have for my iTouch is reading ebooks. I use eReader, an app I've used since the days of my PDA. It's worked faithfully until yesterday. I had another, unrelated problem with my 3rd gen 32g unit and took it to the Apple store. They exchanged it for another one. When I took it home and set it up, I started having problems with eReader. As soon as I opened the app, a connection to the internet opened & I appeared to be locked into their server or was not connecting. My app would freeze. Because this happens automatically, I can't read. Here's what I did to try to resolve this problem: 1) I tried using the iTouch to download a free app and some pictures from the internet to see if it was a problem with the unit....no problems that I could see. 2) I uninstalled the app from the iTouch and reinstalled it, first direct download from the app store, then through iTunes...the downloads worked, but the app didn't function properly. 3) Thinking it might be a hardware problem, I first reset it (Sleep&home button) and then restored it...the problem still persisted. 4) Finally, I called a friend who also uses eReader & had him download a book from his bookshelf & he had no problem. Other than that, the Touch works perfectly. So, the question is, is this a hardware or software problem? I think it's software, but in the iTouch or the app? Any insights out there? Thanks!