Just a quick disclaimer: I am not responsible for any damage you do to your device or warranty. There are plenty of little fiddly bits inside one of these things that can be easily damaged through carelessness or accident. Also, I'm pretty sure if you open one of these yourself you invalidate the warranty. You have been warned.
I forgot to mention, you should probably try PhilB's instructable on the crazy digitizer problem first--you may not need a new digitizer at all! It didn't work for me, but after I'd installed the new touch screen, the DigiFix program was better at calibrating the new screen than the basic software.
***UPDATE 5/4/10: If you've repaired your Palm using my instructable, go into the Notepad and write, "Thanks depotdevoid!" or something along those lines. Take a picture of it and post it to the comments below, and I'll send you a DIY patch!***
Step 1: Get a replacement digitzer
The digitizer actually came in a kit that included a couple of screwdrivers and plastic prybars. I didn't need the screwdrivers, but the prybars certainly came in handy.