Reports are coming in of iPod touch users having graphics glitches after updating to iOS 4.3. As you can see in the picture here and in this video, the problem looks like overlapping icons and "interference" on the screen.
There's a growing thread on the Apple message boards of fourth-generation iPod touch users who aren't happy. Resets and factory restores don't solve the problem, it seems, and users are looking to Apple to fix the problem with an update soon.
"I've noticed in the lock screen, certain notifications seem to have some sort of flash thing (almost looks like it's blinking in so