I figured out that i have to take the blue plastic off the lcd during replacement, but there is also a small piece of the same blue plastic on one of the lcd connectors, just making sure, should I remove that also.
No. This is protective tape. On some connectors it is orange/gold, on some blue, on others different colors. Do not remove the tape from the connector. Just the large sheet on the back of the LCD so you see the mirror surface perfectly.