Persistence is the key here - just give it a second or third try and you should join up with a game no problem. The update to fix this should be out by the first week of jan (2011) or so. Also you can give the Host Game button a shot. Will set you up in your tavern where you can jst hang till a bunch of other players join in. Worked pretty good for me - hosted one game all the way through. Team wanted to go on i think. But I hadda stop. recharge. Take five. Frustrating when - you finally join up a good team and after one or two waves you get dropped because of connection issue. But when it runs smoothly is all a big fat pay-off. Great Game. Spent most of my time over the weekend with it. . . . The Monk Rulz.
The Unreal Engine doesen't, can't and will never run on an iPod Touch 2G or any other 1.st/2.nd gen iDevice except for the iPad.