I successfully completed the project, but have one issue. Looking at the iPhone 3G (vertically) the whole right side of the screen linearly about about a quarter of an inch from the edge, will not respond to my touch. Thus, making letter 'o','p', 'l', and 'back space' unresponsive when pressing.
This is entirely a new issue...even with a cracked screen like my original was, it still responded to all touches.
My only guess is that the ribbon wasn't all the way in, but from the looks of your diagram, I believe it is.
Any help would be great. Thanks.