I have a problem with my Toshiba e740 Pocket PC where I cannot access bottom and top right corners of the screen and calibration does not help. This is due to a damaged touchscreen. Even though you might not see any cracks on your screen, there could still be something wrong. If your lilly is under warranty, I suggest you either fix it or exchange for a new one. To make sure it's really broken, try hooking it up to a different computer.