I have an 8GB iTouch 1G with a broken mobo connector tape/cable. Want it? Home button doesn't really work either. I broke the cable while fixing the button.
Hate to break it to you, but I may not want it for even a super cheap price. The way the 1g touch is made, if it breaks, you are flat out screwed, which is why there are no replacement parts (unlike the iphone or 2g touch) on ebay.
Your best bet is to either put it together and sell it on ebay "as is for parts", or pull it apart for scrap. The LED backlight strip in the LCD is quite nice!
I wouldn't do that.
So, what do you think about the 3GS? I think it's a total deal, I wish it had a front-facing camera and video chat. An iChat clone would be excellent.