a quick note,
I found my milestone, from the boxes, where i placed as being defective. i guess it was early on i saw this erractic behaviour..
i did not use the owen to fix it, but i can confirm i tried this out with a hair dryer and it works.. my erratic screen suddenly works fine when i placed the air of a heated hair dryer on the display for some time..
with a hair dryer the effect is actually seen disappear, when the screen acts erratic and you give it some heat. and it suddenly back to normal..
thanks after a long time, my milestone became alive, although im not gonna use it, its working again..
There's reports of CM9 causing the touch screen to behave strangely when gapps are missing - did you install them?
If the problem is not related to any rom it's most likely hardware-wise.
Often caused by moisture in the screen/digitizer assembly.
Some have managed to fix it by various means of drying.
Daring ones put it in the oven - I'd suggest placing it in a airtight box full of rice or silica gel - anything that absorbs moisture.
I had the same ghosting issues with my A955 Droid 2, my problem area was the middle of the screen. I noticed that if I locked the screen, held down the ear-speaker area, unlocked, and kept it held down, I could use the touch screen no problem. Does that mean adhesive is part of the problem?
So, I tried a modified approach to the original poster. I got a baking pan and a dish towel, put the dish towel in the pan, and put the phone screen facing down on the dish towel. I "baked" it in a regular electric oven for 45 minutes at 170 degrees Fahrenheit and the touch screen worked fine for about 2 days.
I just did it again tonight except what I did differently was I did it for 80 minutes and I let it cool in the oven itself for 3 hours after instead of pulling it out and letting it cool outside. We'll see how long it lasts this time. But, thank you original poster for giving me a rather oddball way of dehydrating electronics!