Check the front display frame unit, the frame and the display are separated by a thin layer film that maybe spent on several point of contact, so the frame became too close and stay always in touch with the screen making it unresponsive.
Fix is simple: disassembly the front layer and replace the thin layer with a new one, you can use a thin adhesive foam, buy it in your hardware store for less than 1 Eur/Usd.
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In the past, some HTC devices have been affected by problems with touchscreen alignment, but you shouldn't have any problems with the TyTN II in this department. The 240 x 320 display is clear and bright and also seems not to suffer from yellow colour cast that has been common on earlier devices.
The keyboard has a nice positive action to it and works extremely well. It's virtually identical to the HTC Herald, and very similar to the HTC TyTN. Holding the device in both hands it's easy to type at a fair rate using just your thumbs.
Finally, to insert a SIM card you have to slide the keyboard open and then look on the rear of the screen. Under a flap you'll find the SIM card slot.
Possible failure of the touch screen or the main board. But since this job is adviced to be looked into by the company specially if spares are required, the opttion to remove must be reconsidered.
Try and warm up set to confirm if any moisture set on has resulted in the prroblem.
Received the following reponse very promptly from HTC Support
---Quote--- This is actually a function of the phone and not a fault. It was designed so that when you were on a call and had the phone against your ear that you didn't accidently tap on the screen and open functions or end the call etc. If you wish to access the touchscreen while on the phone you can press the power button on the side of the phone to turn the screen back on. I have attached a 3rd Party Application that allows the screen to stay on while you are on a call. Follow the below steps to install the program.Attached is a patch for the TyTN II screen blackout issue. This is not an official fix.
Copy the KaiserTweak.zip folder to your pc's desktop.
Connect you device to the pc via ActiveSync.
Use the Explore function in Active Sync to copy the KaiserTweak.zip folder to the windows directory on your TYTN II.
Disconnect your TYTN II from the pc.
Open up file explorer on your TYTN II and go to the windows directory
Unzip the folder to the windows directory on the TYTN II
Run the Kaiser Tweak.exe to install the patch.
Adopt the recommended configs, not the default.
Soft reset the TYTN II by pressing the stylus into the little circle hole on the bottom of the handset.
If it doesn't work first time hard reset and try again.
---End Quote ---
Thanks to the FixYa guys for thier intererst in this topic and problem