Might be able to salvage ipod touch, new lcd, but maybe problem?

It's a 5th gen, and the lcd has been obliterated and needs replaced. I've removed all the necessary parts to replace it, but I found this hiccup, I don't know if it's a problem. It is in the top left of the ipod (see pic). As you can see, there is some kind of amber-colored strip that was connected to a screw but is now severed. Is this a ground? Something that isn't critical for it to function?

http://i6.photobucket.com/albums/y243/Salucious/DSC_0062.jpg

Also, how do I know if the battery is good?

 

I just realized that no one seems to be selling 5th gen ipod touch screens/digitizers. Any reason to think the screen/digitizer from a 4th gen would work? Also, that severed connection I now believe to be the wi-fi antennae. Not an issue I guess, as long as I can still upload stuff to it and it works.

Also, the liquid-sensitive tape on the headphone jack is red, does that mean liquid has touched it? And if so, does that mean it's definitely busted? I need to know so I can replace that as well.