May be your touch screen is peaced out just like mine. i dropped my jam and the touch screen cracked however the display screen behind it worked just fine. If you can see everything on the screen but touch has no response then you might want to consider a jam repair service.
goto this link for more info.
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Re: i-mate jam screen
First of all you need to make a "Hard" restart (thats usually cleans up also the memory so perheps you'd better back it up)You can make it by taking out the battery and there I think you should have the restart button,then go into the menu and try to re-configure your screen touch,
Hope that'll help
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You need to reset your i-mate Jam, for doing so please follow these instruction
i-Mate JAM soft reset Resetting Your Pocket PC Phone
You can perform a soft reset or a full reset. During a soft reset, the device is restarted and only some data in opened programs may be lost. However, a full reset turns the battery off, returns the device to its original factory settings, and deletes all programs, files, contacts and other information you have saved to the device. Therefore, it is extremely important to back up data to a storage card or your computer on a regular basis in the event that a full reset has to be performed.
To perform a soft reset
If your Pocket PC Phone responds slowly, stops responding, or freezes, you can soft reset it. A soft reset causes the Pocket PC Phone to restart and re-adjust memory allocation. Unsaved data in any opened applications may be lost. Use the stylus to press and hold the Reset button, as shown on the next page.
i-Mate JAM hard reset To perform a full reset
A full device reset clears memory, deletes all data and restores the Pocket PC Phone to its default settings. Programs installed at the factory remain, erasing all data that you have created and programs you have installed. Press and hold the power button, and then use the stylus to press the soft reset button at the same time. Be sure you have backed up all your data in a SD card or on your PC before performing a full reset.
If you require more assistance, feel free to reply to this post
First you should make a reset by pushing the button at the base of the phone close to the mouth piece.Then get some sort of stylus maybe from another phone and go to the phone settings and navigate through to the phone display option, where you have the option of realligning your screen.Follow the instructions there and then go and get another stylus for your phone.Your thumb sweat is not touchscreen friendly!
Did you find a solution to this problem? I have just bought an I-Mate PDA2 and within 4 days the touch screen has stopped responding, but like your, the scroll wheel and buttons still work. I have tried the full reset and now I am left stuck on the initial set up screen. Any help would be much appreciated. Thanks