Franco's kernel didn't work. Still have the issue, though less occurring.
---------- Post added at 06:25 PM ---------- Previous post was at 05:59 PM ----------
Okay, so if there is any multi-touch on the screen when it is turned on, it will be unresponsive. The OP says put five fingers on the screen and turn on the screen (while still holding the fingers on the screen). However, the same results can be replicated by only having two fingers and turning on the screen. What this means is, say, if you are holding the phone, and your thumb and finger are on the screen (on the sides, even barely) and turn on the screen, you will get an unresponsive touchscreen.
Multi-touch still works so it isn't a defective touch panel. I don't think this is any hardware issue other than the hardware used in the few affected phones could be of a different revision number, so the kernel isn't working with it the same as the commonly used panel. I could be wrong, but this is just the conclusions I can draw from this.