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Well I had the exact same problem with my K-Jam but my dead zone/spot was more specific to the centre of the entire screen. I also resorted to hard resetting my phone to try and resolve the problem and guess what is the first required action, screen alignment. I tried applying pressure to the centre of the screen for it to take the first setting but it wouldn't. I called Imate and spoke to a technician and their only option was for me to replace my LCD touchscreen mechanism.
I put my phone off for and never attempted the screen alignmentfor about three days (the screen was faced downwards for this period). One morning after awaking I put the phone on and tried aligning the screen with some pressure using my index fingers nail and the screen was aligned and I completed the setup successfully and to this day I dont think that I would resort to resetting the phone again for this problem.