Chosen Solution
Using your tools and components, I replaced the battery of our 2g iPod Touch. I broke the glass during disassembly, and replaced that with a fixit kit as well. After charging the device it powers on, but the brightness level of the display is “just above black.” I could navigate to the brightness settings panel, and played with the settings (auto off, max brightness), but they had no effect. did I make a mistake while re-assembling the components? It was working fine before the battery died (well over a year ago, granted). Thanks.
lkv7, check your board and connectors for corrosion, as well as other damage. The way you describe the error, it does appear as bad backlight. Could be a bad LCD or a logic board issue.