Step 2: Disassemble the Chumby

This process is pretty straight forward.

1. Remove white screw covers.
2. Unscrew back plate.
3. Remove back plate.
4. Remove Volume Wheel.
5. Unplug Microphone and LCD.
5. unscrew and remove acoustic chamber (big black plastic assembly).
6. Unscrew LCD plate and remove.
7. Unplug wifi adapter from USB board.

Anyone who has trouble with these steps can just follow ifixit's guide here. just don't take apart the inner chassis as it is not necessary. We want the bare body and wifi board separated to modify.
A sneaky detail about the little SMD coupling capacitor that you have outlined in the 2 top photos is that it may actually be a 0ohm resistor on some units, so don't let that fool you when testing for shorts with an Ohmmeter. The actual coupling capacitor is integral to the stipline antenna. In particular, it is probably the gap between the small square of exposed gold plating and "D" shape in the antenna trace.
The Insignia Infocast at Best Buy is a Chumby. I bought the eight inch one for 67 dollars on sale. The 3.5 inch was 40 dollars on sale. They have since jacked up the price to almost full retail. I like the eight inch one but have not really tested the antenna for distance. There is a sight that has a bootable image to let you run a web browser on the Chumby. Be interesting to see whether it works on the 3.5 inch. I have a server and wanted to use it to interface with a home automation server.

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Bio: Hardware-loving maker with a long list of projects to do.
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