Owh about that, have you imported any keyboard with titanium backup?
I believe that with the new kernel (2.6.35.x) doesn't compatible with any keyboard calibration data, same have happened to other 2.3.7 based rom on other phones .
The best way would be wipe data,cache and dalvik without reflashing, and walla the touch is working again(it happened to me also  ).

Be sure to not import any data from any keyboard app, or any app that included hardware control permission.

ICS will be a much larger release than any previous Android release. That means that it will also put a much bigger strain on the machines that people use to compile it. As a rule of thumb, everything about ICS in AOSP will be about twice as large as it was for Gingerbread.

Here are some preliminary numbers. Final numbers will probably be a bit different, but those should be a reasonable first-order
approximation. Of course, your mileage may vary.
•6GB of download.
•25GB disk space to do a single build.
•80GB disk space to build all AOSP configs at the same time.
•16GB RAM recommended, more preferred, anything less will measurably
benefit from using an SSD.
•5+ hours of CPU time for a single build, 25+ minutes of wall time, as
measured on my workstation (dual-E5620 i.e. 2x quad-core 2.4GHz HT,
with 24GB of RAM, no SSD).

Naturally, if you plan to work on multiple branches (e.g. ICS release, ICS development branch and AOSP master branch), you need to plan for disk space accordingly, and you could easily end up using 250+GB.