I haven't had any problems with it.
And to whoever said you have to $10.... technically you do, but I never did. Got it for free. All you have to do is download 3.0 from a website, install it to your ipod, then since the only way you can get 3.0 is to pay a one time fee of $10, you can upgrade to 3.1.1 for free. Just google "ipod touch 3.0 free download" and you'll find tons of places to DL it.