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Step 10
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Click Wheel
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Use a heat gun to soften the adhesive underneath the plastic bezel at the bottom of the iPod.
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Use a low heat setting and do not hold the heat gun in place for too long to avoid melting the plastic bezel.
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Use a plastic opening tool to pry the bezel from the case of the iPod and remove it.
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Step 11
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Unscrew three screws from the bottom of the iPod:
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Two 4.4 mm angled Phillips screws
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One 5.4 mm Phillips screw.
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These screws may not come out on their own, so be sure not to lose them when removing the retainer.
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Use a plastic opening tool to pry the metal retainer out from the bottom of the iPod and remove it.
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Step 13
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Place a guitar pick between the click wheel and the case of the Nano and remove the metal spudger.
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Pry up the edges of the click wheel with the guitar pick until the click wheel comes free from the case.
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Do not try to completely remove the click wheel yet, as it is still held in place by a ribbon cable.
Edit
Step 15
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Logic Board Assembly
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Use a heat gun to soften the adhesive underneath the camera/microphone cover.
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Pry the camera/microphone cover off the case with a metal spudger and remove it.
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It is extremely difficult, if not impossible, to avoid damaging the iPod case near the camera. While this will not affect the iPod's functionality, it will hurt its cosmetic appearance.
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