Topic: Touchscreen quirks

This is during my hacks with the chumby classic (vintage compared to the newer ones). But I hope there would be people wanting to answer / discuss.

There are certain peculiarities observed that I would like to search answers for:

Scenario 1:
Debugging a faulty touchscreen
Chumby almost always detects the touch press that helps boot it into firmware update mode (aka special options) however the same touchscreen wont detect a thing when booted normally. Even touchscreens that I had to trash showed this behaviour till their very end.

Scenario 2:
this particular touchscreen is completely unresponsive in normal boot. However, through command line, I ma getting to see that the driver is really working. I have meaningful responses when I 'cat' the /proc/touchscreen entries. Even a $cat /dev/ts provides o/p when the screen is touched. All this shows the screen is alive and well in its sensing as well as the driver. But then it is totally unresponsive when the flash apps are running.
Can anybody please explain?