So I went back to a 10a 4.2.2 base stock. Like usual the touch screen behaved normally here, Then I flashed the latest Mahdi and it once again stopped tracking my finger.
I then flashed the discontinued dyn kernel (gpeish works too) and it started tracking normally. I wanted to use the AIC kernel for AOSP, but unfortunately it does not correct the issue. So what I did was, flash dyn to get it working correctly, then flashed AIC over top of that. It seemed to do the trick. I don't have the issue now. Though I am not sure what this means, or if other people have this problem.