I disagree with the “theory” here. You don’t have to bend the case at all. Watch the x-acto blade video on youtube (it’s linked above in the Step 4 comments). The idea is to slide whatever wide flat tool (putty knife, x-acto blade, iFixit Jimmy, etc…) in between the clip and the body. Setting the iPod flat on the table instead of holding it will help and you won’t cut yourself if a tool slips out. As you disengage clips, you will find that the body will start coming out on it’s own without having to flex your wide tool and bending the case in the process.
Don’t waste time here…just use the metal spudger.
I used the iFixit Jimmy instead of a putty knife. I also watched the x-acto knife video that Robert Watkins linked to in order to find where the clips are located. I slid the Jimmy into those locations until the tool bottomed out and then move on. I only used the metal spudger (to initially open a gap), the Jimmy (to open the clips), and occasionally a plastic spudger (to hold open gaps while I relocated the metal tools to a new section). Pro tip: Use the Jimmy as a letter opener after you fix your iPod.
This step (and next few “repair” steps) is not worth doing unless you mangle the case when you pry it open. If it doesn’t look all bent up, leave this ribbon attached and skip ahead.