Dirae,
I'm worrying about you and your PE. If it really won't hold a wifi connection there could be something wrong with it (meaning you might want to exchange it).
If you have managed to update to Dingo (Android 1.13) there is no need for you to take it any farther. It is perfectly okay, and maybe even a good idea, to use your PE running Dingo and get to know it before you decide whether you want to update to Ermine (Android 2.2). It took me a long time to decide to try the update -- it was scary until after I had done it!
Good luck. I wish I knew more to help you!