Chosen Solution

When I turn on the backlight, the screen only shows white. I can hear the touch wheel clicking as I use it, and the function buttons still light up

@pod_boi could be the dispaly since the backlight is a separate circuit within the display. I would replace it and see what happens. Anything other than the screen would be a cable connector issues (check for corrosion etc.) or even deeper into the logic board circuitry. Since there are no schematics for this iPod we can only hope it is “just “ the screen. iPod 3rd Generation Display Replacement