Hey everyone, it was the piece of black tape for me! Strange, as I have put many cartridges thru this camera already. Here’s where the hole is located: look on the front of camera above the lens where the two little holes for exposure are located. Now find the back of those holes within the camera body where u put the film cartridge. It’s a piece of black tape on a piece of black plastic so look carefully!
Don't forget to include in your repair the adhesive to hold the new screen on. It does not come with the new display. I as unable to find it at iFixit's site but was able to get it here for $10 incl p&p: http://www.badgizmorepair.com/product/ip...
By the time I paid for the screen, opening tool and glue it turned out to be more economical and less hassle to take it to the Apple store (albeit less satisfying than doing it yourself). I suggest you forego the opening tool if you have a good flat blade jewelers screwdriver. A fine temporary fix for not having the correct screen glue is a piece of packing tape. It leaves the iPod open to the elements though, so I highly recommend the correct glue in order to avoid water leaking in around the edge of the screen.
You will also need a very small jewellers or electronics screwdriver for the two screws. I just managed it with an oversized flathead driver.