Hi! Welcome to owning an ig! 
You know, some people just are not nice... On the FAQ part of ProExotics.com, the replies are intelligent but kinda snappy and rude - that's just how some people are, I suppose.
If you do check out ProExotics, they do have good points on many things, but as anyone will tell you, everyone has different experiences with their animals and there is NEVER a "perfect" way to raise your animal - just many wrong/serriously wrong ways...
The 29gal isn't bad for such a baby, but he will grow QUICKLY! I'm making an 8'x3.5'x6 ' cage for mine when he's older, but he'll also be out much of the time whenever anyone is home (quite a bit), so it won't be bad.
Many of my lizards try to climb the edges of their cages, and some dig alot too, but it depends on the species and the individual. My ig doesn't, maybe yours just does. But maybe it's the set-up. Gemstone uses he's low rock hide instead of the box-and-towel I have for him, but that's him. (he's only a baby too). I have him in a 40gal for now, about to move him to a bigger but wire cage for awhile, but he'll soon out-grow that, too and we're in the process of getting things together for the big cage. 
Maybe he's digging because he doesn't have enough to do? Is there tons of stuff to climb on, hide in, play with? They are VERY smart animals, and he might just need more to do. He might just be very active and bored out of his tiny skull - I pry would in a small home.
As for handling, if he's not liking it there are two ways to solve this that I've heard from experienced people with tame adults. First, though, wait a week to three weeks or so to let him calm down in his new home with NO DIRECT INTERACTION except for cleaning and feeding. Then, do either 1) hold him until he calms down and THEN put him down, 2 times a week to once or twice a day for 5-30 minutes in a calm setting just one human and one lizard, once he calms down put him back shortly. OR 2) don't interact with him until he comes to see you first, as was suggested before.
I let Gemstone sit for a couple weeks, then started handling him a bit. Just 5-10 minutes a couple times a week, then interaction for cleaning and feeding. Now, he likes to be handled and hand-fed and will sit with me or my toddler daughter (WASH HANDS ALWAYS!!!!! Don't worry, she's smart and she knows how to respect the animals and to wash up always!) for about 10-15 minutes before he wants to wander off. At his size, though he's not allowed to wander yet. Maybe in another 4-5 months...
You have to take your time with him. Let him have his space if he needs it, but if he's not freaking out all the time you can gently handle him. After he's a year or so old, though, you might want to step up and be more of the (soothing!) boss and hold him for up to 30 minutes of 1 on 1 time of calm talking and handling until he starts getting the fact that you are dominant...
Also, try just a box from crackers or cereal or whatever as a hide, maybe with a wash-cloth in it to help him feel more secure... Let us know how it goes! 
~Buggzter
ps - the rock cave hide was SUPPOSED to be something to climb on, not for a hide, but Gemstone likes sleeping in it before lights-out for the pack of lizards. Go figure!