To open the case in step 2, think of it more as slightly/gently lifting the metal case away from the clips on the face of the iPod as opposed to pushing in the clips to release them.

Use the pics for reference of where the clips are located.

Imagine popping the case off those clips; the iPod begins to spilt open as you work around the edge.

I had good luck starting on the lower right corner when facing the iPod, then moving around the to the bottom in a clockwise manner.