Rotate the iPod 180 degrees and re-heat the exposed side with hair dryer/heat gun.

The area around the Home button contains a lot of adhesive. It will require you to use the spudger on both sides of the button in order to completely separate the frame from the front display.

Continue using the spudger along the edge of the display to completely loosen it on all sides.

The front panel should now be separated from the metal framework.