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One more thing - ignore your local tech. Anything can be fixed unless its been sitting in water. They just want their service fee.
If you've got the confidence to try this repair (which it sounds like you do) and google and youtube too - you can do this.
I don't know about Ipods, but I have worked on Samsung phones in their repair facility and to lift our digitizers from the lcd assembly you have to heat them up a little bit with a heat gun first. The heat loosens the adhesive tape that holds the digitizer down. Once that glue on the tape becomes pliable you should be able to lift it up. Hope this helps.
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