This modification makes the whole thing SMALLER and it makes you feel, that you are sitting in a CINEMA !!!
The disadvantage is, that you have to put it very close to your eye, so people with long eyelashes will not feel comfortable when using it :(
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Signing UpStep 1About the Head Mounted Display ...
The reason, why I bought this HMD was, that I wanted to use it for a NIGHT VISION*. But when I tried it (with the car or with a small spy camera) & I wasn't really happy about the picture that I can see. I knew before, that the resolution would be something about 320x240 = it's not that bad. The real annoying thing was the size of the picture. I had the feeling, that I'm watching a small TV from a big distance !!! I thought a more powerful lens would do it & but I couldn't imagine where to get it. My first thoughts were, to use the jewellery magnifying glass. Unfortunately I didn't try it L, because one day (I don't know why) I was playing with the lens from my spy camera. To my surprise, it is a very powerful !!! And then I've got the idea ... INSTRUCTABLE :)
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I wouldn't really know how to explain that myself but here's Wikipedia:
http://en.wikipedia.org/wiki/Liquid_crystal_display
This foil most of the time is glued directly to the screen itself, which annoyingly, isn't the case here.
I kinda had exactly the same situation as you with my own HMD when I took it apart, although I managed to find the foil a little faster because I knew what to look for. Sadly, I also dropped the polarising foil and stepped on it while searching for it. Now it has some quite severe scratches and I have to replace it.
A fun thing you can try with that film is placing it at a 90° angle to it's normal position. That should invert the screen.
Waiting on your next instructable.
Just a note: The correct link is
http://www.machinegrid.com/2009/02/taking-apart-the-atv-360-eyepiece-head-mounted-display
Thanks for your comments and ideas.