Guys, its not that big of a deal -- the touchscreen. Its not faulty, its just a matter of getting use to the screen itself. I've tried multiple touchscreen devices, and ALL take some getting use to. If you're use to one, and you switch to another, you will have to get use to it. After a few days of tinkering with this device, I stopped having issues with the touchscreen.
"calibration" is not off at all because there is no calibration for capacitive screens (asides from program specific calibration). Try just lightly tapping the area or key you want pressed and it will register better than a hard press (as with a hard press, there is more skin surface area touching the screen, therefor more room for error). Whats causing the issue is 1.6. The stock android keyboard for 1.6 is not that good (laggy, no auto complete).
Installing Ultra Keyboard or Better Keyboard will solve the problem until 2.1 comes out.
As for the trackball, it rolls slow like the older style blackberry's. I honestly don't even know why they put a trackball on it since it has a touchscreen. The only thing I use it for is a tetris app, and I roll it while its in my pocket if Im bored. lol
Dedicated to the Open Development of the Kyocera ZIO