Woosted - which version of the firmware did you get:
This one: FW W1060 V1.8d_W2_A
or
This one: FW W1060 V1.8d_W2_C_
Apparently there is a different LCD in the two versions and it causes your problem. Download the other one you see on their site and it should fix the problem.
EDIT: Also, if people don't mind a smaller on-screen keyboard, this one is pretty cool. It is freeware and I put it up on my site for download.
http://www.coldsuncreations.com/Files/JOTKBD.rar
Just put it on your device and run it. The program will put a small keyboard icon in the tray and you can access the keyboard by clicking the icon.