Thanks so much for all the testing everyone.
This morning I've tried going barefoot and wearing my computer grounding strap for static control, recalibrating the tablet screen with a very heavy touch, and trying the optical mouse covered and uncovered and in bright light and in shadow. I've also tried a different stylus from a Windows CE tablet I have and a generic stylus that works on the LCD side. I haven't seen any change at all in the results, everything produces the long spikes to the upper left corner.
Since others that have tried this for me are having the same or similar results, I'm not as furious as I was at support for not resolving this issue or issuing an RMA under warranty. I have one more question for the group... do you think this not been reported before because nobody is actually
using the LCD for handwriting?
I do use the e-ink side for marking up books, etc. and agree it's superior, but since this is a PE and has very little room for writing (especially with my large messy handwriting due to a nerve condition), I was trying to read on the e-ink and make notes on the LCD.
Once again, thanks all, you've been a huge help.
~ Jan