Is the LCD screen all I need?

I had an accident to where my iPod Touch 2G screen was cracked but it still worked so I kept using it. I guess once its cracked it can only be dropped so many times before it gets worse. Now my iPod cant recognize when I touch the screen. The picture and color is still good and still clear, nothing out of place or lines on the screen, it just can't read my finger touching it.

I remember reading up on something saying there is like 3 layers of screen in an iPod so im confused....is the LCD replacement screen all I need to get to fix my problem?