cutting out

i have a 1g ipod touch, 16 gb and have had it for near on 7 months or so. Recently it started to just stop playing whatever was on and go back to the home screen. I did a system restore and had to update to 2.1 and it seemed to be working again. But now, about 3 weeks later it is cutting out more frequently to the point where i find it near impossible to use. I went to do a system restore again and found out that another update is out and being on a limited download cap another 250 mb dowload in the same month is out of the question and im not sure that it will help given that it is the second time this has happened. So any ideas what may be wrong whether it be software or hardware related? any help would be appreciated, thanks

I'd say it a hardware problem. It may be randomly restarting.

thanks. i guess ill have to send it away then. cheers again