Hi all, I'm facing a very weird issue just a week into owning my nook.

One morning after a normal reading previous night, the screen was frozen. I restarted the nook but couldn't unlock it as the touchscreen was dead.

I resetted it after reading online but since then I'm stuck at the welcome screen. Here's where the things get weird:

Upon restart, the screen is unresponsive and I can't press the Next button. If I let it sit for a while, the button works. At the Terms & Conditions Page, the Agree button works but randomly forwards or reverses the page, so I can't go ahead.

Randomly, it accepts the Agree button and I go to the Timezone Page. Here, only the top 2 options work (flawlessly every time) and again I have to struggle for the Next button, which works randomly.

At the wireless page, only the very top option works. At the enter wireless network password screen, I can type a max of 2 letters if I'm quick before the keyboard goes dead. For that split time, the entire screen works fine. After freezing, the "cross" button on top right works flawlessly every time, so I can go back to the wireless page.

Even weirder, if I put the nook in screensaver mode, touching anywhere resumes it EVERY TIME. I've tried almost every pixel, both touching lightly or heavily.

All the above, specially the screensaver thing makes me want to believe that there's no hardware issue. The device have never been dropped or banged.

Here's what I've tried:
-Tried to root with Touchnooter in hope it writes some system files to fix it.
-Tried hard reset with the two side buttons.
-Force updated firmware 1.2
-Flashed Alpha Format via CWM.
-Tried the pull out battery and boot via usb thing.

The results are same and consistent with every attempt above.

I'm currently at 85% battery level.

I really hope that this is another stupid software bug and I don't have to throw my new nook in the bin, but I'm willing to take it apart and test some circuits if I have to. It's as good as dead as it is.

Hoping for a solution and want to add this case in the database of supposedly large number of bugs in the nook.