I am not sure if that helps, but just for the reference: I had the same problem after updating the Touch to 7.6. I got rid of it by connecting the SB3 to a "real" server with SBS 7.6. The SB3 then immediately prompts for the update to 7.6 firmware and successfully does the update. Since then I have not seen any of the "no connection"-flashes, it's been ~3 weeks...
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