NO WIFI greyed out.
Well, back when i worked at McDonald i spilled sweet tea on my iPod, and let me tell you... it was horrible at first, the screen was actually stained on the inside, the wifi had the "no wifi" appearing in Grey and the back light would die every few minutes. After much determination..
I know this post is old, but maybe this information may help someone else out, I have repaired a lot of iPods and have run across this issue several times.
One example I have in mind is an iPod 2gen that had gotten wet (the moisture indicator was bright red). I was able to bring most of it back from the dead, but was unable to get wifi to work...the wifi selector was grayed out under the settings. I took it back apart to look at it again.
The wifi assemble is at the top right corner of the device, right behind the black shield that is visible on the backside of the outer stainless shell. If you remove the three screws that holds the entire top pcb assembly in place, and gently lift the ribbon wire that connects the top and bottom half, on the backside of the top PCB assemble, you will see a small rectangle metal cover. This covers the broadcom chipset for the wireless. In this particular iPod, I noticed some scorching on this cover. I gently pried the cover up from one of the lengthwise sides. Be careful, this cover is soldered at 4 corners, and I had to break two of the solder points to lift it just high enough so I could see underneath. At this point, I saw a couple blown resistors next to the broadcom chip.
I did not attempt to replace these components, however, I did have a definitive answer on why the WiFi was not working on this iPod.
Hope this saves someone some time in diagnosing a wifi issue after they have performed the other various common fixes to this issue that are found on the web.
Your mistake was not opening the ipod and cleaning the insides up. After a tea spill you're luck you got 6 months of use out of the ipod with all the corrosion on the inside. Your best bet is to open and clean up the insides with 90% alcohol and keep your fingers crossed. Use this guide to open your ipod and clean up a little. Pay attention to the antennae and connectors and clean them up.
GREYED OUT WIFI SOLVED
Hi all i know this is old but just fixed greyed out wifi on ipod touch 2 here is what you need:
1st download Ibackupbot .
right once downloaded dont open it yet
1. back up ipod in itunes
2. when finished close itunes leave ipod plugged in then open ibackupbot
(click ok for found back ups)
in the list look for your ipod and the newest date click on it ,
look down list on right go to (systemconfigur
3 you will now see a list look for <key>allowenabl
under that it should read <false/>
if it reads <true/> change it to <false/>
4 goto the square disc in top left of the box click to save then exit that box .
5 goto the ipod/iphone with the blue arrow click it , it will ask you if you want to restore click yes
6 your ipod will say restore in progress leave it alone
7. at last a window opens saying done ipod may reboot click ok IT WILL REBOOT
8 . check your wifi settings again let me know if it works for you as it did me