Apple Store tell me its "unfixable" but it seems quite simple...??

I have the same symptoms as described in this thread:
http://discussions.apple.com/thread.jspa?messageID=6436296&#6436296
I posted a question on the end of that thread but didnt get any response. Seems like a simple problem somewhere between the disc and the sound output. to summarize:
- no sound from headphones OR when plugged into speakers via bottom connection (logitech mm50 speakers in my case).
- All other aspects work perfectly (no signs of disc problems).
- When plugged into computer works perfectly through iTunes and through computers speakers.
I took it to the Apple store here in Buenos Aires (Argentina) and after a classic case of misdiagnosis initially ("we fixed the headphone jack for you - $260 thanks"), I took it back and told them again that the problem wasnt with the headphone jack. A few hours later they told me its unrepairable in Argentina because they can't replace hard disks here - I tried to explain that it isnt a hard disk problem but didn't get anywhere.
It was wiped during the repair service but I have successfully reloaded 6500 songs on there and it is working fine once again while connected to the computer - this reinforces my thoughts that the hard disk is fine.
The only solution for mobile use is the finger squeeze method mentioned in the above thread, but this is physically quite hard, and even a huge bulldog clip can't apply the necessary force in the precise location. Even using both hands its impossible to hold it with enough force for the music to come through for more than a couple of seconds.
Can anyone offer any suggestions?

Thanks Patrick,
Not sure how to go about opening the ipod, and i dare say i will have no idea once i do what then to do. I have no soldering iron and havent touched one for about 20 years!
Do you think I should take it back to the Apple store and tell them how to do their job and tell them what you just said? They were quite adamant that they didn't want to touch it when they gave it back to me... not sure if they correctly diagnosed it but didn't want to fix it so told me it was the disk, or they just couldnt work out what it was...?
Either way it seems I'm stuck in a hard place at the moment.
Thanks for any further help!

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