I get this constantly. I have found if I touch the bezel part of the screen with one finger, and then touch the icon I am trying to touch with another, it works. Laying it flat often happens, putting it at an angle in my Poetic Slim case will often make it unresponsive. For a long time I have believed it was the case. One theory on some thread I read months ago was that it's a grounding issue, which the first Nexus had, which is why I touch off the active part of the screen with one finger and to the part I am trying to touch with another. It works, sometimes. The trick of shutting off the screen works, sometimes. Sometimes it seems to be only on certain apps. I have had both Nexus 7's, this one since the day it was released. I don't recall this many touch issues with the original I had. It's annoying, but the 90-95% of the time it works without issue is well worth keeping it around. Maybe there will be another new one this year and I will just replace this one, b/c I just cannot seem to skip a version, even though this one is awesome!