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Help Touchscreen Unresponsive, seems stuck in Cursor mode

Hi.

I have the first generation Moto Droid w/ Verizon. It's about a year old. Lately the touchscreen had become quite "animated": it would go berserk and scroll rapidly up/down on lengthy webpages/emails; when trying to use the physical keyboard it would sometimes randomly drop the status/alerts menu down and cause the input form to lose focus; Eventually it would calm down after I shut it down.

Today the touchscreen is unresponsive. Meaning it won't register any input whatsoever. I can still power on/off the phone by holding the power button and then using the keyboard cursor to select power off.

I have reset the phone to no avail. I think the phone is stuck in cursor mode because usually if I use the cursor, it will not immediately show a highlighted selection until I press it once or twice. But when I do the power off, it already has airplane mode highlighted leading me to believe it is stuck in cursor mode.

Please advise. Thank you in advance.
 
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