Crappy itouch

I have a 32bit third generation itouch, I got it about a year and a half ago. about three weeks ago when I would open safari, my music or photos it would close and go to the home screen. Went on-line for help, already rebooted and restored it, did the same thing. Went as far as to uninstall all my apple itunes programs thinking I would start from the beginning and its just gotten worse. Can barely be on it for a few seconds before the screen starts jumping all over the place. I've read on some sites that it might be hardware problems and it would be better, if still under warranty, to return it for a new one. Only problem is that I bought it in Chicago on a trip and I live in Mexico so I think its going to just be an expensive paperweight. :brick:
 

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