I've noticed lately that my screen taps are ending up not really where I clicked and I can no longer click anything along the top (taskbar) or bottom (menubar) at all. I did a hard reset and alligned but the same thing so I know its not any software doing it. I fired up the Notes app and traced the black line from left and this is what it looks like. Any thoughts? Thanks

had that too, nothing can be done, just the soft screen going (much) softer over time. Only solutions are a) somehow get a new TFT and replace the old one b) get a new phone

I recommend b)

Mine did the same thing. Got it replaced a year ago, under warranty. Then recently it started up again, and has been getting steadily worse the last month or so. I solved it by upgrading to the HTC Touch Pro2. Best $99 investment yet.

I think this soft screen was a good idea gone bad... I've had nothing but issues with it and have run out of warranty replacement options for it. I get the dreaded dark Smudge. I think its caused by pressure on the soft screen (by my case?) that eventually deforms the LCD display... So, I'm waiting to get a new different phone.. so I vote (b) as well.
Mark

__________________
Luck is where opportunity meets preparation.

Well since the phone was less than 1 year old, verizon replaced it so I just got a brand new i760. Now that I have this new one I realize now the screen on the old was always bad since the day I had it. The touch screen on this new one is amazingly responsive and accurrate.