This thread is quite old, but it was shown in google top search result.
I had similar problem and got it working myself. It is probably touch screen connectors not connecting properly. Touch screen is plastic-like material on top of normal screen. Connector is located just below the screen, in around 3/4 of screen width (a bit to right of the bottom center of the player). For me just pressing this point quite hard causes the player to work normally. Maybe i'll try to put a little of conducting grease (copper) beneath it to make it work without holding. But there are 4 connectors and i think they shouldn't conduct to each other, so this could be tricky.
If you have any luck with fixing this some better way please let me know.