When removing the touch glass/front of the iPod you need to be very very very careful to actually get between the plastic/rubber and outer chrome frame, not between the glass and and the plastic/rubber part. Otherwise this will break all of your plastic pieces that are glued to your touch screen.
Another thing is I removed one of the contacts from the circuit board while removing the battery. I thought the ipod was toast. But upon further investigation I realized that that contact went though the board. So I scraped that area down to the other contacts and applied solder to it. Then I was able to reinstall the new battery. PHEW!