Find My Phone App shows my IPOD Touch is in California, but I have it with me in Missouri I have all of mine and my kids Apple devices set up on Find My Phone.  We're always misplacing one of the ten!  Today when I went to find my daughters IPOD Touch it shows that the location of it is near Santa Rosa California.  We live in St. Louis MO.  We played the sound and found the touch in her bedroom, but it's still showing on the map that it is in California.  What can be making it show that it's in a different location than it is?
Since iPods don't use cellular or GPS data it relies on wifi triangulation to get the closest GPS coordinates. I would simply reset your iPod touch so it can reboot based off the current network.