Replaced the lcd/digitizer, and realized that I had torn the volume/power on flex cable in half. Then i found this website and actually found some good directions for teardown for this ipod touch. Since the flex cable was near the end portion of the teardown, i replaced the middle frame bezel because it had also cracked when my daughter broke the lcd screen. put back together and all worked like new.

About 7 dollars for the middle frame, 3 dollars for the flex cable and 35 dollars for the lcd/digitizer. The local store wanted 100$ plus parts to fix this. I found all parts on Amazon.

I would recommend putting a small piece of black electrical tape on the top side of the solder joint on the flex cable just to prevent shorting of the solder joint to the back of the lcd as a precaution. My soldering is not as good as factory. The key for this is to take your time. Took me about three hours.

Thanks for the good guide.