The same thing just happened to me! I've only had the reader for 3 days. I went to turn the page and i couldn't get anything to respond. I thought maybe it was the battery was running out, so I pressed the home button, but it was fine. So I thought I would restart the reader, since thats my usual first step when something doesn't work. Except, I have to use the touch screen to confirm that I Do want to shut down the device, so thats a no-go.
I was already considering returning the sony prs-t1 for a nook, because i like the feel of it more. This little flaw has convinced me to send it back, but without a replacement.