Either your LCD connector came loose or your LCD/Digi ASSY needs to be replaced. I suggest pushing really hard on the top/mid-right portion of the screen and then performing a hard reset using the Sleep and home buttons.
PREP,PREP,PREP!!! iPod 4 screen replacement is all about the surface preparation before the new screen is installed. Make sure the digitizer cable is folded the correct way. if you cant get it to stay down and you are sure the cable is folded, place a teny tiny bit of super clue in the ip 2 corners. No more problems.
Very common problem with conversion kits. Take the screws from the back plate out. Take the phone in your hand and push the the side that is hanging over againt a table or something until everything is flush like you like. Dont worry you wont hurt the phone.