Carefully fold the display over away from the rest of the iPod, watching out not to disconnect or break any of the ribbon cables. Set the two halves flat on a flat surface

Use a plastic opening tool to pry the home button switch up from the LCD Plate

You may need to use a heat gun or hair dryer to soften the adhesive on the back of the home button. (Use a low heat setting)

Do not try to remove the home button switch, because it is connected to components below the LCD plate.