cat /proc/bus/input/devices
output: https://gist.github.com/ns/f494a926b0913609f0cf

cat /proc/bus/input/handlers
https://gist.github.com/ns/6c4abf9ac81e4fb04f42

finest logs on simple test app:
https://gist.github.com/ns/b4903f92e941f918e59e

dmesg:
hid-generic 0003:0EEF:0001.0001: input,hiddev0,hidraw0: USB HID v1.00 Pointer [eGalax Inc. USB TouchController] on usb-bcm2708_usb-1.2/input0

Touch screen was working as a pointer on b111 but on any newer tag (b112 - b115) MOUSE_DOWN and MOUSE_UP are recognized but drags are never recognized. (scroll panes don't work, etc).

With finest logs and dragging on the touchscreen I see this logged:

Nov 14, 2013 9:27:20 PM com.sun.glass.ui.lens.LensApplication nativeEventLoop
FINER: 2318 udevInput.c:1357 lens_input_pointerEvents_handleAbsMotion: Pointer absolute axis 0x00 is now 1706, pointer at 533,277
Nov 14, 2013 9:27:20 PM com.sun.glass.ui.lens.LensApplication nativeEventLoop
FINER: 2318 udevInput.c:1337 lens_input_pointerEvents_handleAbsMotion: Absolute motion on axis 0x01, value = 0..4095, value=1110, scalar=0.271062

Nov 14, 2013 9:27:20 PM com.sun.glass.ui.lens.LensApplication nativeEventLoop
FINER: 2318 udevInput.c:1357 lens_input_pointerEvents_handleAbsMotion: Pointer absolute axis 0x01 is now 1110, pointer at 533,278
Nov 14, 2013 9:27:20 PM com.sun.glass.ui.lens.LensApplication nativeEventLoop
FINER: 2318 udevInput.c:1118 lens_input_eventLoop: Releasing lock before epoll_wait()
Nov 14, 2013 9:27:20 PM com.sun.glass.ui.lens.LensApplication nativeEventLoop
FINER: 2318 udevInput.c:1131 lens_input_eventLoop: Trying to capture lock before reading events
Nov 14, 2013 9:27:20 PM com.sun.glass.ui.lens.LensApplication nativeEventLoop
FINER: 2318 udevInput.c:1133 lens_input_eventLoop: lock captured
Nov 14, 2013 9:27:20 PM com.sun.glass.ui.lens.LensApplication nativeEventLoop
FINER: 2318 udevInput.c:2455 lens_input_isDeviceExists: Device 0x934b30 exists
Nov 14, 2013 9:27:20 PM com.sun.glass.ui.lens.LensApplication nativeEventLoop
FINER: 2318 udevInput.c:1337 lens_input_pointerEvents_handleAbsMotion: Absolute motion on axis 0x00, value = 0..4095, value=1682, scalar=0.410745

Any help would be greatly appreciated!