It' on pattern lock. That doesnt stop notifications coming up for anyone that has it set up like that, and it doesnt stop it pressing the emergency calls button!
Air View is off, Increase Touch Sensitivity is off (as already mentioned). Infact I tried the Increase Touch Sensitivity option to see what effect it has and I can't see any difference to it with it turned on, it is just as sensitive, I can literally put my finger inside my shirt and move the screen around and I can do this just as well with the touch sensitivity on or off. Perhaps there is a bug which is causing the increased touch sensitivity to be on ALL the time even when the box is not ticked. Seems to be a problem many are having anyway.
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