On my Ipod touch, when I open up the YouTube app it says "cannot connect to YouTube" despite that I'm in a Wi-Fi area. I can open up the Safari browser all right though and I've tried restarting my IPod and all but with no results. How do I fix the problem?

Where are you connecting from? Remember workplaces and schools often block streaming sites.

May be that Wi-Fi has blocked streaming sites due to the restrictions applied for employees or students :)