> I think it's related to CPU and runaway processes in the background.

I don't think it's that.

I got my Nexus 7 at Google I/O. The first one I got suffered from this same issue right from the very beginning. I could barely even get past the welcome screens, because I couldn't type certain letters on the keyboard. It was worst at the bottom of the screen (which would be the right side in landscape as the video points out).

The device help desk replaced it for me the next day. Unfortunately, the second one had a different problem -- the display was badly corrupted, and the left half of the screen (in portrait mode) was entirely red.

The third one seems to be working fine, apart from one annoying dead pixel.

I got my preorder tablet in the mail last night, and didn't see anything like this over 4-5 hours of broad, "try everything" use. It might be an assembly or component issue with early tablets. Both the linked article and the grandparent seem to be arguing that it's heat related. Mine certainly got hot, though the sample size is too low to make a determination.

I'm with you. Got mine a few days ago and have noticed zero issues like this, even while running games with the tablet flat on a bed.

Interesting. Can you come up with a hypothesis that would explain why only a specific portion of the screen would be effected?

Edit: anothermachine has a workable story for how it could be a software problem elsewhere on this page

From the video I thought it was going to be more of a hardware issue - eg the hot chips are on that side of the device, and the heat interferes with the touchscreen.

I wouldn't expect, though, that turning the screen off & back on would significantly lower the heat within. Leaving it off for a minute might, but the quick cycle he demonstrated in the video wouldn't.

Yeah that's when I changed my mind to "I don't know if it's a hardware or software issue now"...

I'm not sure I buy the heat hypothesis either. I encountered this issue very quickly when running a Tegra game: Tegra games aren't particularly demanding, but rather they exploit additional shader features. Other games and activities that heated up the unit substantially, however, did not cause these touchscreen issues.