My ipod 5 touch screen doesnt work and shows vertical lines?

So, I was getting ready to go to my competition and my ipod 5th generation fell out of my pocket. It fell on the screen and when I looked it apeared to have no external damage.. I turned it on and it had vertical black, white, and even some blue lines on the screen. The touch screen since has not worked. The ipod apears to be fully functional, the time is changing and it conects to itunes. However I can not use my ipod because the touch screen doesn't work. My cousin is a tech nerd and he says that I internally broke the touch screen.

As for fixing it, I've been told a screen replacement will fix the problem. I have also heard that apple with not fix my screen but they will send me a new ipod and that is not what I want. Does anyone know where I can send it in to get fixed and for how much? Or where I can buy a screen replacement kit and how much that would be? And most importantly do you think replacing the screen will fix my problem?