I too have this problem.
I broke the screen a few days ago and took it in to replace it. The guy doing the job was a complete hack. Broke a screen working on it, was dropping parts of the floor.. I guess that's what i get for going to the mall.
Anyways, he finally put it back together with my broken screen, it worked just fine.
Then I took it to the more reputable place, and had them do the install.
I had factory reset at that point (guy in the mall said the power button wasn't working because of Encryption. So I amused him.)
The phone worked great. But, upon getting home and encrypting the phone, it will work with one finger to get through the encryption screen, and then requires either a two finger tap, or one finger left on the screen while the other taps.
A factory reset has the phone working again no problem with one finger, an encrypting has the phone doing the same as before. One finger on the enter your encryption password page, and two fingers required for all functions after that.
Anyone have any ideas? Someone mentioned the RF tape on the digitizer chip, and that it may be missing? Would that cause this functionality? Or is that a red-herring?
I know people will say "why do you need encryption?" I don't, but I want my phone back to how it was, and if the guy at the mall did something to break it's functionality, I'm going to happily hold him responsible. Maybe then he will get out of the fixing buisness, leave it to the pros and stick to selling Justin Bieber covers.
Thanks in advance for any help.